30th March 2017
Good morning. The FTSE 100 dipped a bit further than I thought it would before rising, breaking the 7335 support area to test 7310. However the bulls then appeared and brought it all the way back up to 7370 for a pretty strong close on the day that the UK formally triggered Article 50. While the move had been broadly telegraphed, the divorce will redefine the country’s relationship with its largest trading partner and end decades of deepening political integration on the continent.
The Shanghai Composite Index headed for the biggest decline since December, while equities in Japan, South Korea and Singapore also fell. Australian shares rose as energy producers rallied. Crude approached $50 a barrel as oil stockpiles increased less than forecast. Treasuries dropped after Wednesday’s advance, while gold slipped.
FTSE 100 Outlook and Prediction
Today I am expecting the bulls to try for X and maybe slightly above – we have a fib level at X for resistance with the 10 day Raff channel just above this at X. The bears might appear at this level and the bulls might also want to start taking some profits after the bounce from 7255 has risen well.
I have gone for an initial dip, mainly as we are at the top of the 10day Bianca at 7377 and the 10min chart is bearish to start with today. However, the ASX200 at fairly decent day with a dip and rise.
U.S. House Republicans are considering making another run next week at passing the health-care bill they abruptly pulled from the floor. The renewed discussion comes after President Donald Trump and Republican leaders in Congress said they would move on to issues like a tax overhaul. If the healthcare bill was to get passed then the bulls will be happier that other legislation is likely to pass, including tax cuts.
Support wise today I am watching the X area, and also down to X, and if we do get a dip then this area could well see a bounce. We also have the daily pivot at 7354. We havent yet tested the 2 hour coral line, which has support slightly lower at X.
So really for today I am watching X for resistance and X for support.