7th June 2017
Equity markets remained cautious again yesterday with another small range on the FTSE 100. Gold managed to rise to the top of the 10 day Raff channel at 1296 before a small dip back, however there is definitely a flow to safer assets at the moment. In the latest poll news ahead of the UK election the Tories are down to a tiny 1 point lead having really messed up their campaign.
The ASX200 had a more positive day today, the first this week, and I think we may well have a similar pattern. The lower supports around the 7500 to 7510 area held yesterday and we have climbed a little bit. The 2 hour chart is still bearish though so the bulls will need to break 7535 first thing this morning. We also have an 11.7 point dividend on the FTSE 100 which may well bring a few dividend hunters out before the bell for a modest rise.
FTSE 100 Outlook and Prediction
The bears had their chance to take the price below 7500 yesterday but didn’t manage it so I would expect it to be more bullish today, especially as we have the divi to factor in. The ASX200 had a bullish session Wednesday as well which bodes well for the commodity heavy FTSE 100.
The bears are too wary to be massively short at the moment as there is the election coming up and its pricing in a Tory win still, even with the narrowing polls. Mind you, we all know what polls are like so probably just scare mongering to make sure everyone votes.
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