8th September 2017
We got the rise on the FTSE 100 for most of the day as expected, just a shame it bounced just above the order again (7348, order 7345!) and a rise to the 7400 resistance. Looked like it went for a bit of a stop hunt just past that up to 7413 before dropping back again. I kept the 7395 short open overnight (don’t often do that), and its still running as I am writing this email but may close it soon as its now back in profit.
European Central Bank President Mario Draghi said asset purchases will remain for now, as the ECB left things unchanged yesterday. U.S. jobless claims surged last week by the most since November 2012 because of benefit claims from Hurricane Harvey. They increased to 298,000 versus an estimate of 245,000. Hurricane Irma will also likely have an effect if it hits florida and is wrecking havoc to the islands in its path currently.
FTSE 100 Outlook and Prediction
With the strength yesterday the 2 hour chart has gone bullish and is showing support at 7365. We also have S1 at 7360 today so I am thinking that a long around here is worth a go for a run to test yesterdays high at 7414. If the bulls can break this then the 7440 level is the next area of note where we have a key fib level. Above this then 7460, though that may be a bit much for today. We shall see. It all hinges on a break of the 7414 though.
If the bears were to break the 7360 level then 7341 has a decent fib level, though there is then also the risk that the bulls are losing the fight and a decline to 7300 is still on the cards, maybe lower. 7300 has held repeated tests recently and we are in a range currently between 7300 and 7440, with 7550 at the extreme for the moment.
The FTSE 100 held up pretty well yesterday though the move above 7400 didn’t last too long – more of a probing stop hunt rather than a proper move.
Being Friday just be a little bit more cautious today. There is a rumour that there might well be another NK missile launch this weekend to coincide with 9th September “founding day”.
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