Bull Monday | OPEC further cuts | 7480 support | 7510 resistance

22nd May 2017

It was fairly flat on the FTSE 100 on Friday, with a little rise at the end of the day up to the 7490 level, and futures prices have remained strong this morning. News of a further North Korea missile launch, and the ongoing political rumbling about Trump have failed to dent the bullish momentum over the weekend. Trump was in Saudi Arabia at the weekend, which saw talk of further OPEC oil production cuts forthcoming. A decision will be made on Thursday at a key meeting.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

With the story that Saudi Arabia is willing to cut oil production for a further 9 months the oil price will likely rise a bit further which will help the FTSE 100 as that is heavily influenced by commodity stocks and miners. As such we should get another bull Monday, with a rise looking likely towards the fib level at 7510. Above this then 7535 looks of interest and then above that we have the top of the 2 Bianca channels just below 7600. An area that might be worth a short!

After Fridays bullish close, the 2 hour chart has gone bullish again, with support at 7479. We also have the daily pivot here so likely to see some buyers around this level. If we get any sort of initial dip down at the open to this level then it looks a good spot for a long. Below this 7479 level then we have a key fib level at 7410, though it might take some sudden bad news to get us that low today.

The ASX200 had a pretty bullish session on Monday and I expect us to do the same.

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33 Comments

  2. The pattern in which this is all unwinding is something I am trying to figure out, that should improve the timing of the shorts going forward.

    1. would be great if it closed the gap up…only people interested in buying at 7500 are shorts…

  5. Morning Guys not much happening here,still long,just waiting for the push higher…good luck all…

    1. On a side note,just been walking the dog,what a beautiful morning it is,definitely a case for trading outside now and enjoying life…..maybe some canal side trading coming on or next to a lake or something….:0)

      1. Let’s keep cable under 1.30 and declining and with the potential for some slight gains in oil it’s got potential the Ftse….

        1. Think about it guys,the Ftse peak last time before we hit 5500 was around 7135…… In 2007 the Ftse peak was 6735 ish from memory,I really don’t see why you guys are all playing the short side…there is so much upside potential in my view…

          1. Short the strong rallies for a hundred or so maybe 200 but I don’t see a collapse just yet..

    1. Hindsight is a beautiful luxury we don’t have the means of capitalising out of Si. Don’t waste you efforts thinking about what might have been,let’s nail some points now :0)

        1. Don’t look back Si. Hindsight will drive you mad. For example, a $10,000 Bitcoin investment in 2010 is now worth $200 Million+; $10k in Gold is worth $9,900

        2. At some point Anstel, I might start listening to you. 🙂 When you said 7500 the other day, I thought no way. I still think we are in for a massive drop this week.

  9. Hello all,

    I’m still Short, added some more at 7509. It’s funny I almost know it’s going to rise so odd that I’m still short?

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