Mike Flynn testimony | 7363 FTSE 100 resistance | 7330 support

31st March 2017

Good morning. Well here we are at the end of Q1 for 2017, and also end of month today. Asia and the ASX200 (Australia) have been mixed to weak overnight, with the ASX having a particularly bearish session. However, it marks the end of a pretty strong quarter overall across the board and we may see the same thing today for the FTSE 100, as the gains are crystallised to secure performance bonus’s. A hefty dose of economic data awaits traders Friday, following the morning releases from China and Japan. For Europe, there’s a final reading on U.K. fourth-quarter GDP, and CPI for the euro-zone. Then the U.S. weighs in with personal income and spending.

In the news Mike Flynn has offered to be interviewed in the probe of Trump team’s Russia ties in exchange for immunity, which has seen the bears appear overnight.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

Despite the fact that its end of month and end of quarter, and we also have option expiry at 10:10, I am feeling that we might well see a bit of a dip. There is decent resistance at the 7363 area from a few things on both the 30min and 2 hour charts including todays pivot. I am also thinking that we may see some traders booking their profits from what has been a good quarter. There is a bit of uncertainty around still, and overnight we have the news that Mike Flynn (President Donald Trump’s former national security adviser) is willing to testify about the “Russia thing”. Markets don’t like uncertainty.

We are looking at an open around the 7335 level so not massively off on the futures prices so far. We might therefore see a bit of an initial rise towards yesterdays closing level and the 7363 resistance area. If the bulls were to break this them we still have 7408 as resistance to watch.

Support wise, the 7330 is key to start with, and then below this we start looking at 7311 and 7294. Obviously if the bears were to break 7300 and fight off any bullish attacks at that level it makes things look a fair bit more bearish over all. The start of Q2 might therefore be a bit weak next week.

So, for today I am watching 7330 and 7311 for support and 7363 for resistance. Bear in mind that it might be a bit choppy today as its end of month and end of quarter, as well as a Freaky Friday for good measure.