30th January 2018
The FTSE 100 was pretty flat during Mondays session, with just a 20 point range. The 7665 level held (gap from Friday) for a small rally to 7680 but that was about it for the day. The Dax and S&P longs that we had on fared better, the Dax especially so. Overnight we have seen a sharp sell off across the board though, as a selloff in government bonds accelerated and traders are taking profit after a strong January and start to the year. The S&P has broken below the daily channel for the first time in a long time and as such we may see a more sustained sell off there to 2782ish. Am still watching the FTSE 100 for support at the 7580 level as mentioned yesterday.
FTSE Outlook and Prediction
For today it’s looking like a pretty weak start to the day following the weakness overnight in Asia. The FTSE 100 futures have bounced off the 20 day Raff channel bottom at 7595 so far. There is daily support at 7606, but the main attraction appears to be the 7570/7580 area where there are some decent supports. If the bears were to break below this level then the 200ema on the daily chart at 7438 is the next major support area.
Donald Trump is delivering his state of the Union address this evening so may well inject some bullishness into the US markets then.
ESMA Margin and Leverage increase proposals
As a side note, we should all object to these increased margin and leverage proposals. While a small increase is probably warranted, what is being proposals is draconian and overkill and will prevent most retail traders from actually trading. You can object here
Want more detailed analysis for FTSE 100, DAX, Gold and S&P? Then please join our active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram Chat room and webinar group membership for discussion and realtime trade updates