24th January 2018
Want to discuss things with other traders – please visit the free forum here for todays discussion
Turned into a bit of a choppy day yesterday, the FTSE 100 dropped initially before moving higher again, but the bulls were still unable to break the 7740 resistance level we have had all week. That was despite the S&P putting in another strong rise, and closing out at new all time highs. The Dax also rose strongly, managing 13600 before dropping back. The dollar dropped for a third day as traders increasingly cite concerns about a widening U.S. trade deficit that’s been highlighted by President Donald Trump’s protectionist moves. With cable moving above 140, it has weighed on the FTSE100 and prevented it from pushing on too much. Traders will be turning their attention toward Thursday’s European Central Bank meeting, as well as keeping an eye on Davos, where the world’s business and political elites have gathered for an annual conference that will feature the leaders of the U.S., U.K. and Germany among others.
FTSE Outlook and Prediction
For today it feels like the bulls will try yet again to break through the the 7740 resistance level that has held all week. If they manage to do so then 7780 area is the resistance level of note that is next up, with a potential push past 7795 after that. The ASX200 has a decent Wednesday session and we may well follow suit. At the moment, the cable and dollar strength is suppressing the FTSE 100, and that may well move a bit higher still, so the FTSE bulls might struggle to gain much past 7800 in the short term.
We are on 2 hour support first thing this morning at 7715, with the bottom of the 20d Raff at 7700 below that. There is a fib level of note at 7683 and S3 just below that, so should it get bearish I would be looking for this area to hold. Below this then 7640 is the line in the sand, below which the bulls will be on the back foot as the bears would take control to target the 7600 or lower level.
Membership
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