6th October 2017
Both the resistance levels were tested yesterday with the 7491 the only one getting a reaction with a small dip down. The US helped the bulls to defend the 7510 resistance level late in the day. The bull trend continues, and the US was again in buying mood as it pulls everything up with it. The dollar is at the highest level since July and the Fed still appear to be going for a December rate hike. With a further three next year pencilled in. Another record close for the US equity markets, with the S&P hitting the 2550 level. The FTSE is still lagging (in terms of not making new highs) but is steadily rising and we could well be on for that 7600 level mooted a while back now. There is certainly not many bears at the main resistance levels!
FTSE 100 Outlook and Prediction
Today’s main event is the NFP news at 13:30, forecast at 80k, versus 156k previously. It’s expected to be lower as a result of the 2 recent hurricanes to hit the US Southern States.
Being a NFP Friday its likely to be a little bit weird today as is often the case, however I am looking at support around the 7495 and 7450 levels (if we ever get a day when it dips to support!) and resistance above the 7512 area at 7540 and 7563. We have been testing the top of the daily channels for a couple of sessions now and the bulls are still pushing on, fuelled by bullish rhetoric and expectation (and the fact that Q4 is traditionally the strongest).
With the strength holding yesterday the 2 hour chart has gone bullish again, with support at the 7512 level (resistance becoming support as well here). Cable continues to fall (didn’t last long at 136) and that drop is also helping to push the FTSE 100 up as it comprises of global companies with currency rates boosting profits. There was some analysis a while back that pointed to a rate at 112 – if that were to come to pass then the FTSE 100 is still on for 8000! Cable dropping again as I write this, which may give the FTSE 100 early strength for a rise and dip.
Once again, I am expecting a rise and dip day, with the 7560 looking like a decent resistance area. But as its Friday, just have a bit of caution.
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