22nd February 2017
FTSE 100 Support 7280 7271 7266 7252 7247 7235 7225
FTSe 100 Resistance 7300 7301 7311 7338 7356 7375
Good morning. Another strange day on the FTSE 100 yesterday with the drop down on the poor HSBC results but finding support at the 7268 where we had the 10 day Raff and rising back to hover around 7290 for most of the day. All in all it was a pretty tight range 7268 to 7297. We might get a bit of a sideways day again today, with a kick up towards the bell as we have another large dividend today – 25 points – before a dip back down. The US was in a bullish mood again yesterday with the S&P hitting 2366 as its high, or a gain of 0.6%, with the Dow Jones Industrial Average, the Nasdaq Composite Index and the Russell 200 Index closing at all-time highs.
FTSE 100 Outlook and Prediction
The main thing to bear in mind today is that we have a large divi again, at 25 points. Last week didn’t see a massive divi hunt rise in the late afternoon, but there was a modest rise from 3pm till 4:30. We have UK GDP at 09:30, forecasted a 2.2%, and then at 7pm, the Fed minutes which traders will be watching to see if there are any further clues for a March rate rise (which is widely expected now).
For today I am expecting a slowly bullish day with a rise up towards 7311 with a generally flat sort of feel till later on, when the divi expectation livens things up. We have bearish 2 hour chart at the moment with resistance at 7300 with a coral line there, and we dropped off the Hull moving average at 7301 yesterday. The 30min chart is a bit of a mess to start with today with just that sideways action not giving a clear picture and lots of bunching of candles, moving averages, daily pivot etc as you can see below. It is however on a weak bull to start with as I write this. The bulls will be keen to close above 7310 at some point this week as it keeps the hope of 7360 alive, however they are not really able to follow the other markets up at the moment, with cable tempering the bullishness.
So, I am watching 7310 area quite closely, if the bulls break that then 7338 is the next area of note, while on the support side, 7266 and 7230 where we have the bottom of both the Raff channels. It will be nice if the FTSE 100 can get out of this nasty choppiness that its currently in!