20th January 2017
FTSE 100 Support 7210 7200 7174 7173 7168
FTSE 100 Resistance 7221 7248 7285 7315 7352 7416
Good morning. The FTSE 100 pulled back quite sharply yesterday from the 7260 area to break through the 7240 and 7215 supports, finally finding a bottom at the lower end of all the supports at 7194. Below this we have 7174 (bottom of the 10 day Bianca) which may still be seen, however, the bulls have managed to get it back above 7200 and overnight has remained steady. Of course todays big event is Donald Trumps inauguration later. Will this lead to a continuation of the “Trump Rally” that started back at 6680? If the 7194 level (and possibly the 7174 if tested) support areas hold then we could be on for a rise back up towards 7285 and 7352 where we have the top of the 10 day Bianca, then 7416 for the 20day. Will be interesting to see if the supports for today hold and the pound strengthening continues.
FTSE 100 Outlook and Prediction
For today we might well see the bulls fight back, as long as the lower support at 7175 holds if tested. Above this we do have support on the 30min chart at 7212 which I am thinking is worth a long from, for a rise to 7248 or more. We are at the bottom of the 20 day Raff channel still, and 7174 is the 10 day Bianca as mentioned above. If this support breaks then a long at 7175 is worth a try as I think we will bounce from this area. We also have the 25ema on the daily at 7168 which is usually a good moving average for a swing trade. Of course, today is mostly going to be driven by politics and the associated inauguration event, starting at 1400 UK time. Will there be trouble or will it all go smoothly…. I imagine that the security has really been ramped up for it, both covert and overt.
So, as its Friday, fairly simple plan today, looking to try longs again off the supports. As its going to be a politically driven day, and a Friday, just reduce the risk a bit with smaller stakes if so inclined.