17th July 2017
Friday ended with a bullish overtone, as the bulls got the price up from the 7365 closing price to end the week around 7400 on the futures. Over the weekend the news has been pretty quiet though data out today has seen Asia perform strongly again. Bull Monday’s all round!
Data showed China’s economy maintained its momentum last quarter, expanding at 6.9% from a year earlier, while in the US on Friday soft U.S. consumer price data reinforced the need for gradual policy tightening from American central bankers. Earnings season ramps up this week with Microsoft Corp. and Unilever among those scheduled to report results.
Cable is holding above $13000 for the time being though the ripple from that rise on Friday hasn’t affected the FTSE too much, which have been helped by rising oil prices. Gold also rose sharply on Friday, mainly due to US data and the prospect of rate rises, holding currently around the $1230 area. I did mention gold might be bottoming around that 1220 to 1200 area and looks like it might well have done. We shall see!
FTSE 100 Outlook and Prediction
Will we get another bull Monday pattern? Asia and the ASX had a decent day putting in some solid rises across the board, and we closed Friday strongly so the indications are certainly there. I am watching 7420 and 7445 as the key resistance levels for the moment, and it will be interesting to see if the bulls manage to push above 7450.
Of course, we are still in earning season, and the banks had decent results last week for Q2, so that will have an effect on price moves this week.
The 2 hour chart is bearish with resistance at the 7420 level to start with, though the 10 day channels are now heading up after last weeks push from the bulls. The daily channel has resistance at 7501 and support at xxxx. If the bears were to break this lower level then I am still thinking that we will see the xxxx area which was pencilled in as support last week.
So, fairly simple plan really, looking for a rise towards the key resistance levels today.
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