18th April 2017
Monday saw the US open as they were not on a day off and they put in a bullish performance, dragging the FTSE futures up towards the 7345 level. However, the overnight Asia session has brought the FTSE back down to the 7310 level. There are still geopolitical concerns simmering away, though the test firing of the nuclear missile by North Korea fell flat on Saturday. We are at the bottom of the 10 day Bianca day channel at 7318 currently. Obviously we have missed the bull Monday in the cash prices, so straight into, in theory, bear Tuesday. However, I am thinking that today might actually see a bit of strength, especially if the 7300 area holds as support. Buy the dip quite possibly a good play for today.
FTSE 100 Outlook and Prediction
I have gone for a couple of longs on the plan thinking that buying the dip is a good play for today. We still have the major support at 7250 to break which if we do will see 7200 fairly quickly I expect, and probably lower. However, there are some key supports above that for today, namely 7300 (or just below at 7292/7298 area), and then the bottom of the 10 day Raff at 7274 and S2 at 7268.
The 30min chart is bearish to start off with this morning, with resistance at the 7320 level so we may well see a bit of a dip down towards that first support level first thing. The 2 hour chart is weak bullish though, and we dropped off the coral on this time frame yesterday at the 7340 level. We also have a rising 10 day channel now too, so provided 7290ish holds as support then we could be on for a decent bullish week ahead and may well see 7400 again. Though of course it will still be low volume, so will be slightly erratic.
So, fairly simple plan really for today, looking to buy the dips.