FTSE 100 Support 6989 6981 6973 6955 6942 6925 6912
FTSE 100 Resistance 7020 7025 7050 7058 7101 7159

Good morning. The bears charge was short lived yesterday as the bulls came roaring back from the 6925 area where we had the 25ema on the daily chart, and also a rising trend line following the Brexit low, to regain the 7000 level (just). Didn’t feel like it was going to bounce 80 points at the time though! The 2 hour chart is still bearish with resistance at 7020 today, so the bulls will need to break that early on to push higher. The Bianca channels are starting to look a little more bearish too, with the 10 day channel sneaking below the 20 day.

As you saw, I have set up that WhatsApp group as another method for issuing the trade updates in addition to sending out the emails once a trade is running. Might be a bit more instant for some you and will see how it works out.

US & Asia Overnight from Bloomberg

Emerging stocks pared their weekly drop, most base metals rose and the yen slipped as signs of stabilization in China’s economy boosted investor appetite for riskier assets. Thai stocks surged with the baht on prospects of a smooth transition of power after the king’s death.

The MSCI Emerging Markets Index snapped a three-day losing streak as data showed China’s producer prices rose for the first time since 2012. Thai equities surged the most since 2013. The yen extended a weekly decline while Singapore’s currency slipped as the city state’s central bank left policy unchanged and growth slowed. Copper rebounded and U.S. crude extended gains back above $50 a barrel.

The inflation report contrasts with data from China on Thursday that showed the steepest drop in exports since February and spurred a regional equity selloff. The figures come after minutes of the Federal Reserve’s last meeting signaled policy makers are leaning toward raising rates in December. India also issues data on wholesale prices Friday.

“Once China’s economy improves, that will lead the rebound in growth in other Asian markets, especially Southeast Asia,” said Danny Wong Teck Meng, chief executive officer at Areca Capital Sdn. in Kuala Lumpur, who oversees the equivalent of $170 million. “Oil hovering at this level is conducive for global growth, if prices are stable and not too volatile.”

Stocks

The emerging market gauge was up 0.3 percent as of 12:26 p.m. in Hong Kong. The broader MSCI Asia Pacific Index rose less than 0.1 percent, heading for the biggest weekly decline in almost a month.

Thailand’s SET Index jumped 4.1 percent and the Hang Sang Index added 0.6 percent.

Japan’s Topix index rose 0.1 percent while futures on the S&P 500 were little changed after the U.S. benchmark retreated 0.3 percent Thursday, trimming an earlier slump of as much as 1.1 percent.

The Kospi index jumped 0.6 percent in Seoul as Samsung Electronics Co. climbed for a second day. South Korea’s largest company said it expects a total profit impact of $5.3 billion through March 2017 after ending production of its fire-prone Galaxy Note 7 smartphones.

Currencies

The baht gained 0.4 percent, rising a second day to pare its weekly decline to 1.1 percent. Financial markets in the Southeast Asian nation are open as usual Friday as the government hasn’t requested that they close following the death of King Bhumibol Adulyadej on Thursday.

The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, rose 0.2 percent after snapping a three-day climb to fall 0.3 percent on Thursday. Singapore’s dollar lost 0.6 percent. The yen lost 0.3 percent at 104.05 per dollar after strengthening 0.5 percent last session.

Commodities

Oil headed for a fourth weekly advance after a decline in U.S. fuel supplies and crude stockpiles at the delivery point for New York futures offset an increase in nationwide inventories. West Texas Intermediate rose 0.5 percent, up 1.8 percent for the week.
Zinc in London added 0.6 percent, rebounding from the lowest level in a month, while copper in New York rose 0.2 percent. [Bloomberg]

FTSE 100 Outlook and Prediction

For today awe might see a bit of yesterday bullishness continue, though there is resistance on the 2 hour chart still in play at 7020 and 7058 – shorts off these levels are worth a go I feel, ahead of the weekend. We are going into earnings season in the US and markets are jittery as we saw yesterday. A break below 6940 now will be bearish as thats the 20 day Raff channel (which held yesterday) and could lead back down to 6800. However, a close above 7000 today (we closed at 6980 yesterday) would keep the bulls alive and we will test 7130 again and as its the third test, probably break through. They will be keen to break 7060 today if they are going to regain the advantage from the bears.

For today I am thinking that shorting off the 2 hour resistance levels is worth a go, and also a long off the 30minute coral at 6973 – this long would tally with a drop back to go for the gap close with yesterday closing price. We have the Retail sales in the US at 13:30 and then a confidence report at 15:00, then Yellen speaking at 17:00 – so a few bits of market moving news around today. So fairly simple plan really, looking at 6975 for support, 7020 and 7060 for resistance.