3rd March 2017
FTSE 100 Support 7356 7341 7338 7325 7267 7245
FTSE 100 Resistance 7371 7373 7382 7390 7392 7412 7416 7453
Good morning. A bit of normality yesterday with a consolidation day after that rally from nowhere on Wednesday which saw the FTSE stay within a narrow 20 point range. It actually held up pretty well as the US was a bit more bearish, with the Dow retreating from its 21150 level to back below 21000. Question is, are we going to get a pullback as its got ahead of itself or is it all just coiling for another push higher? To start with the 30min chart is showing some bearish signals with resistance at 7373 and 7391.
FTSE 100 Outlook and Prediction
Wednesday’s rise caught most people off guard judging by the general theme posted on various news sites, blogs, forums and so on. So yesterday saw everyone taking stock and trying to work out what the next stage of the unpredictable markets holds. Overnight we have had a bit of a dip off the back of a bearish US session and a weaker Asia session.
As mentioned above the 30min chart is showing resistance initially at 7373, though we might pop above this to test the R1 and coral area at 7390. If this area were to break and the bulls manage to push above 7399 then we are more than likely to see a rise to the 7420 are where we have the top of the Bianca channels, and possibly even 7450. Will they be that strong on a Friday though?
Support wise, we have S2 initially at 7356 and then the 2 hour coral at 7325. I am thinking that trying shorts at the 7390 area is worth a go today and see if we get a bit of a retrace/reality check of Wednesdays rise.
As its Friday its never going to be straightforward and the FTSE is slightly bonkers at the moment, largely being controlled by the GBPUSD rate. The ASX200 had a rise and dip day after a pretty bearish Thursday (seems that the FTSE was the only market not to drop back on Thursday) and I think that we will do the same.
I do think that the bulls will try and go for the 7395 level rather than dropping from the 7373 area, however there is nothing wrong with fading in trades and entering at 7373 and 7390 if it rises further, to both target the 7350 and 7340 levels is a viable plan.