11th April 2017
Good morning. Well I think that was the flattest Monday on the FTSE 100 I have seen for a very long time, if ever. A 20 point range all day. Fortunately the S&P was a bit more lively with the short from 2366 netting a decent 10 points. I am not quite sure why the FTSE 100 was so flat – maybe a mixture of everyone adopting a wait and see attitude to the Russia/USA/Syria issue as well as a 4 day week seeing quite a few people taking this week and next as leave? That said, the flip side is that with a weak Asia session overnight, the FTSE is still at 7340! However, the ASX200 (Australia) had a fairly bullish Tuesday session. Bit less of the bull Monday yesterday, and maybe not much bear Tuesday today?
FTSE 100 Outlook and Prediction
I wonder if today will be a bit more lively? We have resistance at the 7375 level and this looks like a decent shorting area if seen. The 2 Bianca channels are here, the 10 day at 7375 and the 20 day at 7377, as well as the R2 level for today. The 2 hour chart is still bullish, with support as the 7331 level, so if this holds initially then we may well get a push higher. I am taking the bullish vibe from the ASX200 despite the other Asian markets being weaker.
Despite this bullish vibe, we still have considerable geopolitical uncertainty at the moment, with North Korea joining the fray saying they are ready for war with the USA. How to keep poking someone!
Resistance above the 7375 level is around the 7400 level, where we have the 10 day Raff and also a key fib level. I am not feeling masses of upside above this just at the moment though.
Support wise, we have 7331 as mentioned, then 7309 for S3. Below this the 7250 still looms large and a break of that will likely see a quick fall towards 7200 and probably lower.
For today however, I am watching the 7375 area for resistance and 7330 as support.