Breakout above 7080 after the US China tariff news | 7135 resistance 7200 above | 7050 support | Trading help

Breakout above 7080 after the US China tariff news | 7135 resistance 7200 above | 7050 support | Trading help

3rd December 2018

The main news over the weekend regarding the US/China tariffs has seen the futures prices jump nicely to start off the bull Monday. We broke the support at 7010 on Friday, however, the lower 6960 level held perfectly and the rise started from there ahead of the weekend (almost like the buyers knew what was ahead…) With this break up to start the week we may well see a slight initial dip down to go for the gap close to around the 7020 level though might not get that low.

High streets, house prices and car sales will be under scrutiny this week. Analysts expect like-for-like shop sales stats released by the British Retail Consortium on Tuesday to be up 0.3pc on last year compared with a 0.1pc increase the previous month.

President Donald Trump said in a late-night tweet that China has agreed to “reduce and remove” tariffs on imported American-made cars, a claim that wasn’t immediately confirmed by Beijing. Trump gave no other details in his post, which came shortly after he agreed with President Xi Jinping to a truce in the trade war during a meeting at the Group of 20 summit in Argentina.

In case you missed it, U.S. financial markets will close Wednesday for a national day of mourning to honor former President George H.W. Bush.

FTSE 100 Trading Signals, Forecast and Prediction

Bull Monday today almost looks a given and once again buying the dips is the best play I feel. Friday saw a break of 7010 but the hold of 6960 looks positive overall, allows the big players to get in sub 7000 for a push up over the next couple of weeks. The bulls need to break 7135 initially and if they do then a test of the 7215 level is pretty achievable. This level is the top of a long running downtrend so will need a bit of effort to break above, but if they do then 7400 is on the cards. We are looking at opening around the fib level at 7087 and just below R2 at 7106 so may well see an initial drop as the market tries to close the gap from Friday, and also head down towards the 2 hour support level at 7045.

With the bullishness on the futures, and Fridays bounce, the 2 hour chart now has support at 7045 and the coral remains green with support at 7042.  Should the bears break lower than this then Friday’s 7010 level is back in play and looks positive to hold as we have the daily pivot and 30min coral here. Probably worth a long again if seen but need to look at the price action at the time. As per Friday, below this then 6960 is the next support level of note.


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