24th February 2017
FTSE 100 Support 7268 7265 7250 7248 7235 7232 7207
FTSE 100 Resistance 7280 7282 7283 7284 7310 7322 7346
Good morning. That was a decent hold of the 7310 resistance level yesterday, surviving 2 tests and forcing the FTSE back below 7300, and netting a few bear points too. It looked like it might break on the second attempt and the bulls would manage the 7338 level but alas not and instead we dropped to the 7270 support area – which only saw a lacklustre bounce. Good move closing that long fairly quickly I feel.
Testing it again now as I write this, and we have the bottom of the Bianca channels here at 7265 and 7268. Gold put in a steady rise all day which gave an idea that the indices were probably going to weaken, along with more and more calls in the media etc for new highs and for the bull train to keep on going. Usually a sign for caution. That said, one swallow does not make a summer, and the US markets have remained pretty positive, Dow still at 20800 and S&P at 2361. The 2 hour FTSE 100 chart has gone bearish though, with resistance at 7282.
FTSE 100 Outlook and Prediction
For today I am looking at 7280 area as resistance and 7250 as support. If the latter breaks then we should get a drop down to 7233 where we have S2 and the 10 day Raff, whilst below this we have 7207 daily support. On the upside, if the bulls break 7280 area then 7310 is the next area of interest, and it held well as resistance yesterday. Above this then 7346 looks possible, but again we would be testing the top of a Bianca channel first, the 10 day one at 7322.
The 30min chart is showing a few resistance levels at the 7280 area, as well as the 2 hour having the 100 Huill MA here as well. The 10 day Raff channel has levelled off for the first time in a while so we may well start to see some more bearishness. But it isn’t confirmed as yet. If the FTSE were to break below the recent low at 7100 then it looks decidedly more bearish.
So for today I am watching to see what the bears do at the 7280 level, and what the bulls do at 7250. Its a Friday of course so usual Friday weirdness expected! I am expecting some more bearishness now though.