11th January 2018
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That was a great reaction at the 7755 shorting area we entered yesterday, helped by China saying that they officials had recommended halting purchases of U.S. bonds, since denied/branded fake news. We had a decent drop down to 7720 before the bulls reappeared, after that news story was “apparently” misquoted. The S&P saw a similar move, dropping down to the 2736 support area, but still couldn’t manage to break the 2752 resistance after rising back. For the moment on the FTSE the 7755 level is still resistance with 7800 above this. The daily support has moved up to 7620 so a dip down to this area still makes sense for a subsequent push higher.
FTSE Outlook and Prediction
The 7757 level (yesterdays high) is still resistance for the moment, and we have R1 just above this at 7761. The bulls are obviously keen to push above this as it opens up the 7791 and 7820 levels as the next areas of resistance. The top of the 10 day Raff channel is at 7820 for today so if we were to get this high then we may well see a stutter here. The bulls need to break 7757 first though.
On the support side of things, we have 7716 (yesterdays low) and also the 200ema on the 30min here – the bulls will be keen to defend thos area as a break of this opens up 7680 and 7620 still. The latter still looks a decent level for a bounce to start from for a push higher if we were to drop off this 7755 level again.
As witnessed yesterday we are still in “buy the dips” for the moment, though I was thinking that yesterdays move off 7755 was likely to reach 7705, but stalled a bit early at 7716. Another dip down to this area may well see buyers again today. The ASX was weaker again during Thursday, with 6050 the support level there tested twice, so we may well mimic something similar today.
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