7th February 2017
FTSE 100 Support 7176 7164 7157 7154 7106 7089
FTSE 100 Resistance 7183 7184 7203 7209 7225 7248 7275
Good morning. The bulls failed to break the 7205 level yesterday on the FTSE 100, managing to just sneak above it but not really pulling away, and then hovering there for 4 hours! The bears then appeared to take us down to the support area at 7170, but then it all stalled again and we stayed around that level instead for the rest of the session. For the bulls the support level at 7160/7170 is still intact so we may well see the rise happen today, for a retest of the 7210 level. 7209 is the top of the Bianca 10 day channel for today. We still have 7250 above that as resistance. If the bears break the 7160 support then 7100 and lower look possible. We could well get a bear Monday, bull Tuesday pattern again.
FTSE 100 Outlook and Prediction
For today I am thinking that the support level will still be valid and hold around 7170. Below this we have the green coral support on the 2 hour at 7155 though so if it does break then that is the next area of support. If we rise from the 7170 area then we should be on for a retest of the 7210 level tested yesterday and might well stutter a bit here. Double top and also the top of the 10 day Bianca channel. If the bulls are able to break this area then 7248 is still resistance and could well mark a short term high, as we are still near the top of the various daily channel so might not zoom too far past these higher resistance areas.
If the bears manage to break 7170 initially, and then the 7155 level, a trip back down towards 7100 and possibly lower – I am thinking 7080 and 7022 as levels of note.
However for today, I am thinking that we might see a bit of Bull Tuesday once again to get a rise that will try and break the 7210 level. the GBPUSD rate dropped below 125 again, and if that drops further then that should in theory help the FTSE 100 to rise and offset the bearishness present in other indices. We are also see further rises in gold so there is a bit of a flight to safety going on there, as the markets digest the new US administration and how they will balance protectionist trade rhetoric with promised tax cuts and spending increases.
In case you are wondering what BTFD means: