13th July 2017
After an initial dip from the 7400 area the bulls powered through thanks to Janet Yellen who signaled the Federal Reserve won’t rush to tighten monetary policy as inflation remains persistently below target. U.S. stocks also rose toward records, Treasuries rallied and the dollar retreated, while the FTSE 100 finally broke through and stuck above the 7385 resistance level that we have been dropping off repeatedly. We go into the next 2 session looking fairly positive and have earnings out from some of the big hitters to come as well. The US markets hitting new highs certainly diverted attention away from Trump Jr and the email saga.
FTSE 100 Outlook and Prediction
For today I expect that the bulls will continue yesterdays rise initially as now that 7385 has broken, and they managed to close above 7405 it opens up the realistic possibility for the next level of note which is 7470. There is the 20 day Raff to start with at 7444 to start with though so may see a stutter here depending on how much momentum they can muster, while the 10 day Raff is now at 7522. With 7405 breaking we can safely presume that 7305 on Tuesday is the short term low and the bulls are now back in the game. The 2 hour chart is bullish again, with support also showing at 7385. Previous resistance there also becomes support.
If it all goes pear shaped for the bulls and we go back below 7385 then the next leg down is likely to breach 7300 and we will see that 7260 area that is still support. For today however, I expect the pivot at 7406 to hold, and 7385 if it doesn’t.
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