Bears to drive it down to 7100 and 7050? | Trading Technical Analysis

7360 support holds - can it be defended | 7400 7450 resistance | Analysis Education

2nd March 2018

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The markets continued to fall yesterday as did the snow in the UK, after Trump announced tariffs on imported steel and aluminium into the US. Treasuries also climbed on the news as investors grew fearful that a damaging trade war could be on the horizon. The S&P 500 Index briefly fell below its 100-day moving average while the Dow Jones Industrial Average dropped more than 400 points.

“By continuing to gradually raise interest rates over time, we’re trying to balance those two things and achieve inflation moving up to target but also make sure the economy doesn’t overheat,” Powell told the Senate Banking Committee on Thursday in his second testimony of the week.

The FTSE found a bit of support initially at the 7150 level yesterday, managing to bounce to 7200 again, before falling back as the US fell to test the 7100 level. Overnight has seen that area hold, with the bottom of the 10 day Raff daily channel now at 7085 though below here I am watching the 7050 level for support now.

FTSE 100 Forecast and Prediction

For today I am feeling a bit more optimistic as 7100 held overnight but as its Friday also being a bit cautious. I have a weak buy at the 7095 level which is the overnight low, as the bulls will be keen to get the FTSE 100 back above 7150 as soon as possible. If the bears take control further then we are looking at a decline towards 7000 and possibly lower – 6945 is the bottom of the 20 day Raff and an area that would be quite achievable. We also have the February low at 6919.

Above the 7153 daily pivot the bulls really need to push above the 7200 level and the recent support now resistance at 7220 though that may be a bit of a big ask for today.


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