7626 support today 7582 below | Object to ESMA margin | Trading Technical Analysis

Bull Monday to continue with 7375 74150 resistance today | 7305 7250 support | Tory lead polls

26th January 2018

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The FTSE 100 decline continued yesterday, bouncing though at 7607, just above the 7598 support area after Donald Trump contradicted the Treasury secretary saying he preferred a strong dollar – which of course saw cable decline and cause the FTSE to jump. Till that point cable was rising above the 143 level and pundits were starting to talk about 150 being reached soon! For the FTSE today, S2 and todays key fib level are showing support at 7582 so any weakness again today looks like it will see that area. And may well bounce from there.

The Dax long worked well initially yesterday though once the ECB news came out the rise was swiftly reversed, dropping nearly 200 points from its high, before rebounding slightly. Choppy waters with Davos this week!


FTSE Outlook and Prediction

For today we will probably be cable driven again. With that having dropped off a bit from the 143 level we may see some initial FTSE 100 strength with a rise towards the 200ema at 7678 and then a drop back towards the close. The ASX200 did something similar, with a rise and dip day, and we may well follow suit.

Initial support this morning is at 7626 where we have the 30min coral line, so the bulls will be keen to defend this area initially, but if it breaks then 7600 and 7582 looks like the next viable supports that would be worth a long trade from.

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

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