7575 broke so 7500 and 7450 on the cards | Technical Analysis | FTSE 100 Forecast

Can the bulls break 7320 today | 7345 7370 resistance | 7160 support | Trading analysis help

1st February 2018

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On the FTSE 100 the bears broke through the 7575 support area and sure enough we got the drop down towards the 7500 level. However, the bulls fought back at 7520 just towards the market close, positioning for a start of the month rally today. Overnight Asian markets have recovered after their three day sell off, while the S&P halted its declines at 2820. As its the first of the month today, we may well see an initial rise as the new month money flows into the markets, and the 30min chart is showing some support at 7550 now.

Federal Reserve officials, meeting for the last time under Chair Janet Yellen, left borrowing costs unchanged Wednesday while adding emphasis to their plan for more hikes, setting the stage for an increase in March under Jerome Powell.


FTSE 100 Forecast and Prediction

The 7520 level held well last night and I am thinking that we will see an initial rise, but probably quite slow, towards the 7609 resistance level. We have a key fib level here and also the 200ema on the 30min chart, and may well see a bearish reaction here. Above this then the bulls will be keen to test the 7645 level which is now resistance on the daily chart – swing shorters may well be looking to reload here.

On the support side of things, the initial support is at 7550, with last nights low at 7520 below that. Then there is a key fib level at 7499 and also the round number here too. If the bears do go for it then a trip down towards 7450 still looks possible, but that may come tomorrow, if the bears remain in control.

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