9th March 2017
FTSE 100 Support 7303 7297 7285 7280 7279 7278 7271 7259
FTSE 100 Resistance 7329 7346 7360 7373 7419
Good morning. Well the bulls failed to break 7355 yesterday in what was overall a pretty weak session, especially just after the close with a decline to 7315 where we have remained overnight. Twice the bulls tried to push past 7355 and were rebuffed on both occasions, which opens the door for a test of the bottom of the Bianca channels at 7303 and 7285 today. Cable and gold also both fell, with the link between cable and the FTSE 100 appearing weak again – past few months have seen the FTSE rise when cable fell as it helps FTSE 100 companies having a weaker pound.
Yesterdays budget was a fairly muted affair on the markets with a few tax increases as expected, the most notable for investors being the cut in tax free dividend income from £5000 to £2000.
Mario Draghi is expected to keep QE going until the end of the year, the policy decision will be announced at 12:45. NFP news in the USA tomorrow also, I am thinking around the 190k mark for that so should be good as ADP was good the other day.
FTSE 100 Outlook and Prediction
We had a fairly weak evening to drop off the 7355 area, and are now nearing the bottom of the daily channels with support in the 7280 to 7303 range. Longs around here should be alright I think, as we also have Draghi talking later and the ECB decision with QE largely expected to be continued till the end of the year.
The daily pivot at 7329 is initial resistance along with the red 30min coral line at 7323. Higher up we have a red coral on the 2 hour at 7360 – the bulls will be aiming to break this level for a push towards 7400 again, and maybe higher at 7450.
Support wise, below 7280 we have 7240 as looking fairly key and a break of this could well see things heading back down to 7100. As mentioned in the support and resistance levels section, there are some decent fib retrace levels at 7295 and 7271 of the move from 7193 to 7397 so these could also act as support areas, along with the bottom of the 10 day Raff at 7280.
I am thinking that it could well be a buy the dip day today.