12th October 2017
Thats the first time in a while that the 2 hour support level hasn’t worked while we are in an uptrend so it might be a sign that things are getting a bit toppy, with the 7540 level breaking yesterday. The FTSE never really retraced its fall during the day either, with the divi spurt at the end only adding 5 or so. After the Fed minutes showed there remains a strong degree of caution over the timing of future interest-rate increases, we saw gold rise further towards 1300, and the S&P rise again to test the 2555 level.
FTSE 100 Outlook and Prediction
For today there is resistance on the 30min chart to start with at 7535, and then the 2 hour chart at 7545 above this. After yesterday’s poor show from the bulls, a rising gold price, and the failure for the FTSE to follow other markets higher there might be a bit of hesitancy to pile in long at the moment. When 7535 broke the other day, that was the bulls sign to push on to 7600 which they haven’t been able to do yet. I am watching 7545 closely today as that is the new level that the bulls need to break if they are to make that happen.
Yesterday being weak has meant that the 2 hour chart is bearish again (its a bit choppy at the moment) and showing that resistance, while the 7515 is the 200ema on the 30min chart and in theory is decent support. We also have the bottom of the 10 day Bainca channel at 7528 though we are just below this. The 10 day Raff is at 7505.
The ASX200 had a decent bullish day which may well reflect int he FTSE today, though the rise in cable has not helped the FTSE bulls. Its back above 132 now and weighing it down. If cable continues to rise then the FTSE should, in theory, decline.
Below the 7505 level then we have a key fib at 7485 and if the bears do start to take control then a decline down to 7455 looks probable.
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