24th March 2017
Good morning. Nice, albeit slow, climb from the 7310 level again in a good sign for the bulls that level held again. The market was really waiting to see how Donald Trump’s first big test panned out with the vote on the health care bill, only for it to be delayed till Monday. Initially, when it looked like it wouldn’t pass, prices dropped and FTSE 100 futures fell back to 7320. However overnight we have seen a rise and now sitting at 7350.
We might get another fairly flat day today, though there is decent looking 2 hour support now at 7324. Retail sales figures yesterday also helped the bulls to defend the 7310 support area coming in higher than expected. Today we have traders looking at the PMI Eurozone data mid morning, followed by PMI and durable goods orders in the US later.
FTSE 100 Outlook and Prediction
With the 7310 level holding well on several tests and the vote on the new healthcare bill delayed till Monday we may well see the bulls push up towards 7370 and possibly 7400 today. The 2 hour chart has now gone bullish with support at the 7325 level, and we also have the daily pivot here at 7328. So I am thinking a buy the dip plan is a good one for today, even on a Freaky Friday!
Resistance wise, initially we have the 200ema on the 30min at 7356, with a fib level just above R2 at 7374 so the bulls might encounter some bearish resistance here. If the bulls can break above this then we should get a retest of the 7400 level.
If the bears where to break 7325 then 7310 is still valid support, but a break of that still sees support around 7277, though there is now a 10 day Raff channel in the way at 7289.
So, basically looking to go long around the 7325 level.