18th August 2017
Spaces available – Next Workshop Seminar 7th September 2017 London Heathrow – please click here
Yesterday finally saw the bears take back control from the bulls following three days of the relief rally. The drop was mostly due once again to turmoil in US politics, as dysfunction and paralysis seem to be more and more prolific. Rumours that Gary Cohn, Trump’s top economic adviser, was resigning sent jitters through the market. Then we had the sad and tragic news of a number of fatalities following another terrorist attack, this time driving a truck through tourists in Barcelona.
FTSE 100 Outlook and Prediction
We have option expiry today so likely to see some chop at 10:10 till 10:20ish as various contracts expire and roll over. Its also Friday so likely to be odd anyway! For today I am thinking a rise up to the 7395 resistance level that we have on the 2 hour chart and then a bit more down side. The bears will be keen to break the 7345 level initially though as we have support there, but the bigger test for them will be 7300. We have S1 here at 7303 and also just below a key fib level at 7312. As you know, 7300 held well on the last leg down so if they can break this level then 7247 looks likely, where we have the 200ema on the daily.
For the bulls, they will need to overcome the uncertainty in the US political world to drive this back up, which may well be possible and yesterdays “chaos” is another storm in a tea cup. Thats certainly been the pattern since Trump became President. The market has a wobble for a day then rises back. If the bulls were able to push above the 7430 area then we could well be on for a push higher again, with 7600 or more still looking possible.
So, watching 7312 for a support, though a break of 7300 (30min candle close below this level constitutes a break for me) will invalidate that support, and 7395 for resistance, with 7430 above that. We have effectively been in a range from 7300 and 7550 since June, so a break of that range is a big deal.
Membership
Want more detailed analysis for FTSE 100, DAX, Gold and S&P? Then please join our active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- WhatsApp and webinars group membership for discussion and realtime trade updates