28th March 2017
Good morning. The slightly lower support area of 7260 held two tests yesterday as oil rebounded from $47 and decent German data helped negate the early fears over Trump’s healthcare bill being pulled on Friday. The FTSE 100 managed to rise despite cable moving above 12500 and adding over 100, so not so much of a correlation between them yesterday.
US equities also fought back with the S&P printing a low of 2322 before rising back to 2347 this morning. The bulls even managed to break the resistance at 7300 so there is definitely a strong bullish bias at the moment – a few members that look at turn dates were saying that yesterday/today could print a low and then we get a new leg up. The 2 hour chart has flipped to bull with that rise yesterday and showing support at 7290 now.
FTSE 100 Outlook and Prediction
Well we sort of had a half hearted attempt at a bull Monday yesterday, so I am wondering if we have a similar attempt at a bear Tuesday. I am thinking that buying the dip today is a good plan, and as we now have support at the 7290 area, this is probably a good level to go for. The ASX200 had a decent performance today with a pretty bullish day from the off, which will help the commodity heavy FTSE 100.
We have initial resistance at 7330 and then 7345, so the bears might try to enter around these areas, for a run down. They would need to break 7260 to make things look bearish again, and that level did hold well yesterday so could be tough to break.
7290 has a few supports – daily pivot and a coral trend line here as well as 2 hour chart support. The 20 day Bianca is at 7282 as well for today.
On the news front we have the PM Theresa May triggering Article 50 tomorrow; US consumer confidence at 2pm today, and Yellen speaking later on today (16:50 UK time). Depending on what she talks about we may see some movement around then if any further hawkish or dovish overtones are detected.