20th April 2017
Good morning. For a few weeks while the FTSE was at 7350 and 7450 I mentioned that a drop to 7100 was likely and it finally hit that level yesterday. Admittedly I didn’t expect it to drop there in two sessions, with the FTSE having fallen 4% now since last Tuesday! Oil slumped yesterday nearly hitting $50 per barrel which dragged the FTSE down, while cable (GBPUSD rate) hovered around the 12800 level.
FTSE 100 Outlook and Prediction
For today I am thinking that we might see a bit of a rise from the 7090 level initially, towards the 7132 level where we have some resistance on the 2 hour chart. This 7090 area is the February 2017 low.
Below 7090 there is some daily support at 7072 with the 10 day Bianca and 7062 for the area of the 23.6% Fib retracement of the rally from Brexit referendum day. If this level breaks then its likely to get even more bearish over April and we are looking at sub-7000.
If the resistance level at 7140 holds then the bears are likely to try and go for that 7075 level today while the momentum is with them. However, we are testing the bottom of the Raff channels still, Asia had a more positive session and the ASX200 had a fairly bullish start. Oil has also climbed back to $51.Cable dropped down yesterday from its highs also, and is now hitting some resistance at 12805, with 12825 above that. If that drops back a bit today then that might help the FTSE to rise.