8th June 2017
The high was 7555, and from that point on it dropped right down to the 7470 support level, pretty much in a straight line. Jitters started about the 7555 level also as oil stockpiles grew, which in turn brought the oil price down 4%, effecting the FTSE 100. Data from the Energy Information Administration showed US crude stocks increased by 3.3m barrels last week, compared to forecasts for a decrease of 3.5m barrels. Coupled with a rising pound, the only way was down for the FTSE100. With the election today, longs weren’t going to pile in, so we saw profit taking after the rise from 7100. Latest polls still show the Tories with a slight lead, but the exit polls will probably drive todays action.
FTSE 100 Outlook and Prediction
Going to be one of those days today when it could do anything as the news flow comes through during the day. Based on the performance of the ASX and a bit of a recovery in the oil price, one would expect a bullish day on the FTSE 100 today, with a rise from this 7470 support which we have had pencilled in all week. We are at the bottom of the 20 day Raff and the Bianca channels also, so a rise would technically make sense. But its election day! However, there is support lower down at S1 and a key fib level at 7442 – a dip down to here is possible, especially if the news flow is negative and we are looking as the Tories not doing as well as the market would want.
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