7482 7500 resistance | 7420 support | learn to trade | market analysis

UK GDP today with a rise towards 7638 on the cards | 7685 resistance | 7590 7536 support

12th December 2017

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The early drop on the FTSE 100 only got as far as the previous resistance at 7412 before the slow rise up for the entire day took place, to reach a high around 7460. Overnight we have nudged a bit higher towards the 7480 resistance level and it will be interesting to see what happens here. Cable has continued to slowly decline from the recent highs, which has underpinned the FTSE rise, while more Brexit negotiations continue. Later this week we have the central bank meeting, and a possible rate hike in the US which is what will keep markets fairly subdued early this week, while traders await that. Bitcoin continues to hover around the $16k level, while alternative crypto currencies such as litecoin are starting to get some more coverage.


FTSE Outlook and Prediction

FTSE 100 Prediction Support Resistance learn to trade market analysis
FTSE 100 Prediction Support Resistance learn to trade market analysis

We are pretty much on the 7477 resistance area as I am writing this and as such I am thinking that this morning we will see a bit of a dip down from this level, with the 7420 2 hour support area the likely target if that plays out. If the bulls can then defend 7420 we should see more bullishness creeping in and a rise towards 7500 is still on the cards.

A break lower though and things look a bit weaker and start to make it look like we may not get a Santa Rally this year. Of course its not a given that we will get a year end rally, but its just another thing to be aware of as a possible scenario.

Below 7420 then we are looking at 7400 and 7349 where we have S3 for today.

Another reason for thinking we might see a bit of a dip from this 7477 area is that we are at the top of the 20d Raff again here, with the 10 day slightly higher at 7505.

After a bull Monday we can get a bear Tuesday so a dip down to 7420 before another push higher looks like a sensible play. We also have option expiry this week on Friday, so may see a bit of weakness Wed/Thurs.

So watching 7477 and 7420 as the key levels for today on the FTSE.

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