18th October 2017
The bulls failed to break above 7565 yesterday even though we managed to break 23,000 on the Dow during the US session and set a new record. The SP stayed below the 2560 though, but gold fell further away from the 1300 level. The bulls do keep fighting back, so while the 7545 short managed a profit with the drop to 7515 they bought it back up again, to keep the prospect of a trip to 7600 alive. I am thinking that if they do push this up then we will actually exceed that level as we have the 20 day Bianca channel at 7673 today which is an area worth remembering.
FTSE 100 Outlook and Prediction
The bulls most definitely bought the dip yesterday – twice in fact, at 7505 and 7515 – and the bears failed to break below 7500 so the momentum is still with the bulls. They now need to break the 7566 area which was the recent high, though there is a fib pivot resistance level at 7578 which may cause a stutter. If they were able to push above the 7600 level as well then 7673 is the next major area of note, where we have the 20 day Bianca today. Might be a big ask to get that high today but that area is worth noting.
On the bearish side, if the bears can break 7500 then 7478 is the other fib level I am watching and will likely see decent support here. If they were able to break below this then 7455 is the 25ema on the daily, and a good swing long entry. It may be that 7565 stays as the short term high and we get a leg down from this current area to that before seeing a further rise. It looks like the bulls will need to be quick out the blocks today. Yesterday I was more confident of a drop down through 7500, but seeing how well that area was defended makes it look like the bears are still quite weak, though a third test of 7505 may well see a break.
Ball is in the bulls court really and watching to see if they can break through the 7578 area today. It may well be that it just pops above the recent high but then retreats.
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