9th February 2017
FTSE 100 Support 7183 7177 7158 7119
FTSE 100 Resistance 7209 7199 7211 7216 7228 7241 7248 7255
Good morning. The bulls failed to break 7195 yesterday with it actually being stronger resistance than expected, and we saw an eventual drop down to S1 at 7146 before the bulls got a turbo boost and brought it all the way back up to 7190 where we have stayed overnight. Was an interesting rise as it didn’t even pause for breath at 7175 which is where you would expect it to as we had resistance from the drop at that level on a few timeframes. Bit odd and no doubt helped by the GBPUSD rate again. That has fallen overnight to just above 125. Of course we also had another parliament vote last night, the result of which give PM May the all clear to invoke Article 50. Not really surprising that result.
FTSE 100 Outlook and Prediction
The bears finally managed to break 7160 support yesterday which in theory opens the way for a drop back to 7100. However it seems the bulls had other ideas as it was quickly brought back up, keeping the viability of a rise to 7248 in play still. Tricky trading thats for sure! For today I am looking at 7177 to hold as support and the bulls to build on their rise yesterday to retest the 7225 resistance seen earlier this week. If they can break above that then we are likely to see the 7250 area where we have the top of the 10 day Raff again.
The Bianca channel resistance levels are at 7211 and 7241 so we may well see some reaction at these prices as well. Both 20 day channels are around the 7210 area as we also have the 20 day Raff at 7215 – will be interesting to see if the bulls can break above this today.
Support wise, yesterdays low at 7145 is the next area if the pivot at 7177 breaks, with 7100 below that. A break of 7100 will get the bears quite excited though if yesterday evening’s strength continues today then I don’t think we will be seeing that level today.
Gold has continued its impressive rise, nearly back at the 1250 level now and firmly holding above 1200. Still think we will see 1500 this year on that.