13th September 2017
Once again the bulls failed to break the 7440 level yesterday and we got a dip back down to 7385. The bulls defended this with some attempts to hold above 7400 but the picture is looking a bit more bearish now for the short term. The Apple event yesterday saw their price decline, also the Nasdaq. Maybe the queue of people willing to pay a grand for the new iPhone won’t be as long as they think!
The S&P tried to go for 2500 but fell short at 2498 after the bell, while the ASX200 had a bit more of a bearish day today. The big news for the UK yesterday was that inflation hit 2.9%, well above the 2% target, and saw sterling rise as interest rate increases to control inflation are possible. With the pound rising, it knocked the FTSE100 off its stride.
FTSE 100 Outlook and Prediction
For today I am thinking a quick rise at the bell to above 7400 (it hasn’t sold off majorly overnight) and then a bit of a dip down from there. The bulls have failed to hold above 7400 and break the 7440 resistance level though it still remains that if they do we are looking at 7460 and 7500 resistance.
On the support side, 7350 still looks like decent support so a dip down today to that would look good and if it holds spring us back up for a stronger second half of the week towards 7500.
For today the 2 hour chart has gone bearish after the drop yesterday and is showing resistance at the 7410 level so an early short here should be good. The bottom of both the Bianca channels are between 7340 and 7350 so this area as a target for shorts, plus as a long area looks viable.
We have option expiry on Friday as well as BoE tomorrow – expected to leave policy unchanged but after that inflation report yesterday some will be pushing for a rate increase.
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