29th March 2017
Good morning. It took a while but the bulls eventually appeared and the 7290 level held yesterday. With cable falling sharply, oil rising and a bullish US (off the back of a rise in consumer confidence) the FTSE 100 was pushed back up to 7360 (thought it might stutter at 7345 but it really wanted to just climb higher). Overnight the strength has remained as the Asian markets built on the gains as the S&P500 posted its biggest gain in 2 weeks. Global stocks are on course for a fifth straight month of gains, with the MSCI All-Country World Index trading within a whisker of its all-time high reached earlier this month.
Of course the big UK news is that today is the today we leap into the new era as Article 50 is triggered. How will the markets react everyone wonders? As its a known variable I would presume that its already priced in – and looks like business as usual. Cable might be a different story though!
FTSE 100 Outlook and Prediction
With the triggering of Article 50 today we might see a bit of volatility but as mentioned you would expect that something like that which is known about would be priced in. After yesterdays rise you would normally expect a bit of consolidation, however I am expecting it to push up towards the 7390 level where we have 3 resistance levels of note – 10day Raff, R1 and also a fib level. As such we might see some bears try shorting here.
Support wise, the main area is around the 7338 level where we have the daily pivot and the 30min coral. We also have the 200ema on 30min at 7332. If the bulls can defend this area then we are better placed for a more compelling rise over the next few sessions and I am watching for the high 7400’s and possibly that 7520 still.
To start with today we are at the top of the 10 day Bianca at 7369 so we may see an initial dip first thing to the 30min support at 7357, possibly the lower ones as mentioned.
We have a 4.8 dividend today as well so bear that in mind at the close.
Generally feeling bullish for today.