31st August 2017
Was a bit flat across the board yesterday which is why it didn’t look overly clear first thing probably. A consolidation day after the bulls had defended the 7300 level. The bulls managed to hold the 7350 level but couldn’t break 7380 so we were in a pretty tight range all day. Gold continued its decline from its recent missile driven high, and dipped below $1300 overnight. The North Korea saga continues, with Trump dismissing the idea of negotiating, while his defense chief said the U.S. hasn’t given up on diplomatic options. We also have NFP news tomorrow.
Today is month end so we should likely see some profit taking this afternoon. There is a decent fib level at 7419 so a short here might well yield a few points. I am thinking a rise and dip day today.
FTSE 100 Outlook and Prediction
For the last day of the month I am expecting a rise and dip day, with the dip down due to some month end profit taking later on today. After a very flat day yesterday the various support and resistance levels are all quite bunched, with only 100 points separating S3 and R3 today (7323 and 7423 respectively). We also have NFP tomorrow to bear in mind, and again we might have a rise and dip day tomorrow as new money flows in, then positions closed ahead of the news.
Initial support today is around the pivot at 7370, and we also have the 2 hour chart showing support at 7363 looking at the Hull moving average. The bulls have defended that line yesterday evening, though there wasn’t much of a rise of it so far. The coral tried line is still red showing a downtrend though. so the bulls need to work hard and be quick out the blocks.
If the bulls can push above yesterdays high at 7380, then we should see rise towards that fib level at 7419 and also R3 at 7423. We have the top of the 10 day Bianca channel at 7435, and the 20 day at 7445 so I am expecting some stutters in this 7419/7445 area. With the bulls defending 7300 on Tuesday, and then a consolidation day yesterday we should in theory have a decent platform to push higher. However, if yesterdays low is taken out at 7350 I expect we will see a drop down to S3 at 7323, and possibly 7294 where there is the bottom of the 10 day Bianca.
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