12th January 2018
There were a few bears yesterday morning at the 7760 shorting level for a quick run down to 7735, but as is the way the bulls bought it back up again and the US continued to be bullish too. Oil rose above $70 a barrel in London for the first time in three years as production cuts by OPEC and rising demand whittle away a global surplus, which also helped the FTSE 100 fight back from the lows, being commodity heavy. With R1 at 7793 today that is the next logical target for the bulls, with 7816 above that, where we have a fib level today. Yesterday’s low and 200ema at 7735 is initial support. Meanwhile, the Dow continues its march higher, already adding nearly 1000 points in 2018!
FTSE Outlook and Prediction
The bulls are still in control as we saw yesterday again with the rise off the 7735 low and a break of the 7761 resistance level. For today I am thinking that we will rise to test the 7793 R1 level – the bulls amy even push on past this and we have 7816 above this. If the 7793 gets a reaction then a drop down towards 7735 and the 200ema looks viable. A break of this then opens up a retest of the 7690 support area from earlier this week.
The charts are bullish though really, so again shorting needs to be done carefully. The S&P has managed to break through its resistance at the th e2760 level from yesterday and would appear to be on a path to close the week out strongly. The Dax has failed to recapture the 13400 area though and is the weakest looking one at the moment.
For the FTSE, it feels like its finally caught up with the US exuberance and is playing catch up now, having lagged the rises for most of 2017. Still think we will see 8000 soon!
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