8th August 2018
The FTSE 100 bulls managed the early strength yesterday to get the rise to the 7735 resistance area. It managed to get to 7750 which is the top of the channel that I am expecting for the summer period – between 7550 and 7750 – before dropping back again. We have the large 39 point dividend today and that is still underpinning the strength. Being a low volume August there is still the chance that we overshoot/false breakout 7750 and test that 7783 resistance area.
The U.S. said it will begin imposing 25 percent duties on an additional $16 billion in Chinese imports in two weeks, escalating a trade war between the world’s two biggest economies. Went for a small short on the S&P last night at 2859 via the Telegram group – was thinking a dip down to 2845 but its not done much as yet.
FTSE 100 Trading Signals, Forecast and Prediction
For today I am thinking that we get a bit of a move above the 7550 channel line to test the 7760 level where we have R1 for today, and also a possible test of the 2 daily resistance levels at 7775 and 7783. I am basically watching this area as fairly key resistance. We have the 39 point dividend today so bear that in mind for later on any open positions and also I expect that to keep the bulls in charge for the moment, though they will weaken sure I am sure. A move above 7800 will invalidate that chance of a drop down though.
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