Bullish day for 7515 to 7520 | Brexit Canada Style | Trade Tariffs | Trading Analysis Signals Plans

Bullish day for 7515 to 7520 | Brexit Canada Style | Trade Tariffs | Trading Analysis Signals Plans

24th September 2018

Friday on the FTSE saw the bulls remain in control with a rise to the 200ema on the daily at 7491, from where we have dropped back slightly as Trumps $200bn of tariffs kicks in today. The S&P500 managed 2940 and has shed 20 points since. Despite the bullishness on Friday we got slightly above the key resistance at 7477 on the FTSE so remains to be seen if thats a positive or just an overshoot. A lot of that move was driven by cable dropping nearly 200 points over Brexit. Brexit rumbles on with Labour talking about a second referendum, while the majority of the Cabinet now supports moving towards a Canada-style trade deal with the EU following the outright rejection of Theresa May’s Chequers plan.

The trade battle between the world’s two biggest economies took another turn for the worse when China on Saturday called off talks with U.S. officials that had been planned for this week. From 12:00 a.m. Washington time on Monday, $200 billion of Chinese products will be subject to tariffs on top of the $50 billion in goods already slapped with tariffs actions in the year. Meanwhile, $110 billion of goods from the U.S. will become subject to Chinese tariffs around the same time, or about 70 percent of the value of goods it bought from America in 2017. There’s a growing consensus in Beijing that substantive talks will only be possible with the Trump administration after U.S. mid-term elections in November, people familiar said.

The Fed’s anticipated interest-rate increase on Wednesday may be overshadowed by the 2019 dot plot or any changes to its Aug. 1 statement. Investors will be looking out for whether the Fed delivers a hawkish or dovish statement. Chairman Jerome Powell’s press conference will be key to understanding how the FOMC views the tariff war and twin U.S. deficits. Key U.S. data will be Friday’s personal income and spending report that contains two important inflation gauges.

Comcast Corp. has offered about $40 billion for Sky in a knockout bid, topping rival suitor 21st Century Fox Inc. in an auction for the European TV giant


FTSE 100 Trading Signals, Forecast and Prediction

For today I think we might see a tentative rise towards the cluster of daily resistance levels around the 7515 to 7520 area. There is initial support at the 7450 level where we have the daily pivot, with 7400 area below this. Few decent looking supports there namely a fib, S1 and probably the 200ema on the 30min later today if that continues to climb.

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