3rd April 2017
Good morning I hope you had good weekend. Spring certainly sprung with some great weather (in the South anyway)! The news flow was a little bit more pessimistic though with airports and nuclear power stations in the UK told to increase their security measures in light of “new” intelligence about possible destructive hacking. Mind you, there are probably loads of things that we don’t hear about so the market wont be too effected. It was also kicking off with Spain and the EU over Gibraltar. Again. Lord Howard even throwing the “war” element in and saying our Navy is bigger than your Navy!
I am thinking that we will get another bull Monday, bear Tuesday pattern this week. Today is the start of the new investing month so might see a rise towards 7400 as the new money flows in. The top of the 10 day Bianca channel is 7393 so thinking around this area for resistance before we get a bit of a leg down. The end of last month/quarter on Friday wasn’t as bullish as everyone was thinking either.
FTSE 100 Outlook and Prediction
I am thinking that we might see a bit of bullishness today as its the start of the new month. Last month ended with a bit of a whimper really, but the 7320 low area held ok. I can see a rise up towards the 7400/7420 area at some point soon before possibly getting another leg down, which may go as far as 7200. There are the usual political situations simmering away with Brexit/Gibralter and the US and North Korea which may unsettle a few traders.
The 2 hour chart is bearish at the monent with resistance from the Hull moving average at 7361, so we may see some stutters here if we are going to rise back up towards 7400. I have gone for an initial dip this morning, mainly as the 30min chart has a bit of a bearish look about it. The ASX200 also experienced a bit of a dip and rise day.
We have NFP this Friday as well as the minutes from the Fed March meeting which might give a stern on the timeframes for further rate rises.
Generally today though I am thinking that we will see a bullish day and watching the 7360 and 7410 areas for resistance. Generally war rhetoric is good for stocks!