19th June 2017
News is jolly these days – race wars and anarchy, and thats just London. Iran has lobbed some missiles at Syria in response to an attack on them. Brexit negotiations start today and FTSE 100 futures are up. Gold has continued decline now around the 1250 level, while cable is getting closer to moving above 12800 again. We have a bullish 2 hour chart on the FTSE 100 now, following the strong close on Friday near the 7500 level, support now at 7450. The bounce from the 7385 low the other day where we had the bottom of the 20 da Raff has held well and seems to be gaining some traction now.
FTSE 100 Outlook and Prediction
To start with we have resistance at 7535 and an initial spike up to this area may well be worth shorting. We have bull Monday, against an uncertain back drop, however the FTSE 100 looks fairly bullish to start with. If we do get a drop back then the 7450 area is decent support, with 7411 below this. If the bears were to break 7400 then a trip down to 7300 or lower is still on the cards.
If the bulls can push above 7535 today then a retest of the recent high at 7600 is the likely target area, and we have the top of the Raff at 7577 and 7600 at the moment.
The news backdrop isn’t too conducive to a stable situation really, and there was also news that house prices are slowing, and even declining in some parts. Thats will led to further belt tightening I would expect as people tend to do when house prices slow. There are a lot of RSI divergence signals appearing on the 30min chart this morning also, so the rise might have got ahead of itself firth thing, which is why I am thinking that an initial spurt up at the open might well retrace. 7450 looks pretty key for today.
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