21st July 2017
Another day and the FTSE pushed on to test the 7505 level this time before dropping back along with the US on news that the investigation into Donald Trump (the knives are definitely out for him aren’t they!) is going to be widened to include business dealings with Russia. The price then failed to better 7500 for the remainder of the session despite the US bouncing back from the lows, and overnight has dipped a little. The Asia markets also took a breather after a steady rise this week, dropping back a little bit.
Its Freaky Friday today, so I tend to do reduced stakes today, we also have option expiry so likely to see some spikiness at 10:10 till 10:20 as option contracts roll over. A spike up can be a good spot to short – might spike to the 7530 level though if it goes mad. Caution needed!
Yesterday ECB President Mario Draghi signaled the bank would discuss language on bond purchases in the autumn. No decision has been made on timing or form of any tapering, with the timeline remaining open.
FTSE 100 Outlook and Prediction
The daily chart has gone bullish now with decent looking support at 7425, but I am still not ruling out a test of the 7600 level at some point soon. The bulls failed to break that last time to test the 7650 resistance at the time, but it would set up a decent double top at that level. Not today though I don’t think!
So, if we do rise up towards XXXX and then turn down from here, I am thinking that the XXXX and then XXXX area is a decent initial target with the XXXX area below that.
Should the bulls break XXXX then we have a decent fib level at XXXX as a possible short entry as well.
That all said, there is pivot support at 7477 also, and the bulls may well defend this area, at least initially. A speculative long here might be worth a go as well.
Usual Friday caveat applies though, and coupled with Option Expiry at 10:10 stay nimble!
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