Bear Tuesday | FTSE 100 resistance 7390 7420 | Support 7350

7th March 2017

FTSE 100 Support 7355 7353 7349 7343 7326 7299
FTSE 100 Resistance 7372 7384 7390 7392 7427 7452

Good morning. Bit of a slow day on the FTSE 100 yesterday as we head towards the budget, though the 7345 support held all day, despite a couple of attempts by the bears to break below it. They couldn’t make it stick and then we had the largest rise just before the bell when we managed…… 7360! Managed a few points off the long but not as many as hoped. Overnight has hovered around the same level, as Asian markets assessed the prospects for further gains after a rally leading up to a near-certain U.S. interest-rate increase. The bulls will be keen to push for further rises on the FTSE today, to test the 7400 and then 7430 areas.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

We loosely had a bull Monday yesterday so might well keep the pattern going and have a bear Tuesday. The merger between Standard Life and Aberdeen Asset Management helped keep the index positive. However, I am expecting an early rise towards the 7392 resistance area this morning and it will be interesting to see if the bears appear there. We have resistance here and then again at 7400. If the bulls are able to break this then 7427 and 7450 are the next areas of note. The latter might well be worth a short to hold for a few days as well. Of course we have the budget on Wednesday to bear in mind and how the market might react to the possibility of tax increases.

We seem to be doing the opposite to the US at the moment so the powers that be are still slightly worried about our economy – US put interest rates up, we reduce, US talk about tax cuts, we talk about tax increases. The FTSE 100 is still being very influenced by GBPUSD exchange rate. If Sterling rises the the FTSE 100 is going to drop back. A recession is on the cards because of Brexit. Not a done deal but a real possibility. In that scenario Sterling has to fall further, which will support the FTSE 100, but we also need to be mindful of US policy to repatriate trillions of offshore dollar/profits held abroad due to high corporation taxes in America. That could cause sterling to rise.

Anyway, enough big picture musings. For today I am expecting a rise and dip day. The 30min chart is still looking positive for some early strength, with the green coral now showing support at 7353 where we also have the daily pivot. Might be worth a long around here to target 7390/7400 initially. Then its really up the bears if we get to that level and what happens next!

53 Comments

      1. Ohhh that would be really nice :0) ive more modest expectations but let’s see…..good luck…

  3. On Thursday we have the European Deposit rate,interest rate and the policy statement out……then on Friday we have the unemployment rate for Canada …Usa…..and NFP so plenty of data to move things around….

    1. The data I have that was updated on 6th March is we are due a dividend on weds of 5.57 pts…..not to be sniffed at but not massive like we had a few weeks ago….If my estimates are incorrect Nick please correct me thanks…

  4. it’s a nice day to make some money..

    where in the world is everyone? I’m in Wales

    1. Yes…..or even lose some money….I’m not taking anything for granted in this game……

  5. Should be a slow grind today. Real moves are end of week. Roughly half of FTSE dividends are paid ouf in first 4 months of year. So provides reason to chase the markets higher and then get out before the Summer. Mind you, computer driven trading may have changed that pattern last few years. Still useful info if you are in for the dividends. Might want to allocate capital to bonds after April, or cash, until later in the year.

    1. I am long at 7355 at the moment and thinking a very slow grind up to 7390… Very slow being the operative phrase!

      1. Would have hoped for a bit more given the pounds weakness today, which looks set to continue. Purists would note we have not yet yet traded above yesterdays hammer candle, a cause for concern. Hopefully the US will sort that out in a few hours. Given the weakness in cable, I am also holding long.

          1. A patient trader is a profitable trader…..:0) I like that one :0)…..or what about……it’s not timing the market……it’s time in the market….take your pick.. :0)

        3. Typical when you have a FTSE long… Cable and gold drop and have absolutely no effect on the FTSE 100!

  7. What kind of songs are getting to your head right now? (if you are on the song side of things). I have a set of songs which I use to encourage.

  8. I don’t know, there’s no long, I don’t know what kind of long you are waiting guys – there’s no long. I will have to close b/e on mine.

    2. That’s it, I closed that s,, had some profits, that’s it. Shouldn’t have waited that long.

        1. Yes I’m taking heat here but I’m still breathing and its a lovely early spring day :0)

        2. I had another long, wasn’t that good, but out b/e. Had enough with this longs today.

        4. Kept my original win of only 23 quid today, don’t know how much points it is at all. I am not initiating longs today, I will wait till long develops properly, and if it drops it drops: I won’t be losing.

  9. Major support level is 7330. Stop losses currently being taken out, that process should be close to completion. If I see a turn around here I will buy some more.

  10. Unusual day, extreme low volatility and range. Bulls hoping for strength later on to give us another hammer candle for tomorrow. A breakout of the range 7330-70 would be welcome. Especially higher.

    2. I was a bit silly after I last wrote, run off the rails, lost a bit of money on a monkey trades but then stuck with the short 11971 on which I recovered most of it after 3.00. Then had long 11962.2 which I held up to 7.04pm which I closed with +7. Now noticed it all collapsed. Good I closed when I did just after my working session. Tomorrow I’ll recover the rest.

      1. Well done Jack,very best of luck,it’s been a tricky day for sure and caught a few of us by surprise….ce la vie…..

  12. Hey Nick,have you kept your longs or have they been stopped out…from 55 weren’t they ?

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