More bullishness – 7540 and 7560 resistance today | Trading analysis

6th October 2017
Both the resistance levels were tested yesterday with the 7491 the only one getting a reaction with a small dip down. The US helped the bulls to defend the 7510 resistance level late in the day. The bull trend continues, and the US was again in buying mood as it pulls everything up with it. The dollar is at the highest level since July and the Fed still appear to be going for a December rate hike. With a further three next year pencilled in. Another record close for the US equity markets, with the S&P hitting the 2550 level. The FTSE is still lagging (in terms of not making new highs) but is steadily rising and we could well be on for that 7600 level mooted a while back now. There is certainly not many bears at the main resistance levels!


FTSE 100 Outlook and Prediction

FTSE 100 Prediction Support Resistance Trading Signals
FTSE 100 Prediction Support Resistance Trading Signals

Today’s main event is the NFP news at 13:30, forecast at 80k, versus 156k previously. It’s expected to be lower as a result of the 2 recent hurricanes to hit the US Southern States.

Being a NFP Friday its likely to be a little bit weird today as is often the case, however I am looking at support around the 7495 and 7450 levels (if we ever get a day when it dips to support!) and resistance above the 7512 area at 7540 and 7563. We have been testing the top of the daily channels for a couple of sessions now and the bulls are still pushing on, fuelled by bullish rhetoric and expectation (and the fact that Q4 is traditionally the strongest).

With the strength holding yesterday the 2 hour chart has gone bullish again, with support at the 7512 level (resistance becoming support as well here). Cable continues to fall (didn’t last long at 136) and that drop is also helping to push the FTSE 100 up as it comprises of global companies with currency rates boosting profits. There was some analysis a while back that pointed to a rate at 112 – if that were to come to pass then the FTSE 100 is still on for 8000! Cable dropping again as I write this, which may give the FTSE 100 early strength for a rise and dip.

Once again, I am expecting a rise and dip day, with the 7560 looking like a decent resistance area. But as its Friday, just have a bit of caution.

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47 Comments

      1. this has been steep rise but thats not really a reason to fall. although pullbacks offer good long .. i wonder if it will be slowly rise and rise like past few days .. no volatility it seems..

  5. just want to ask people
    here if we are expecting 80000 vs 156 previously t=does that mean it would srop on expecttions andrise figures are good.. sahre yourthughts

  8. Long on dax still Tp 13040

    Will long Dow depending results later. I think this is going to go mad if NFP is good…fuel to the flame!

    Risk on, 23k is in eye.

    GL

    1. I must be mad to be long on Dax, but hope for 13000. Just want to see what it feels like to be a pioneer through this price.

      1. Trading works on the greater fool theory.. so therefore no market is too high to start buying or too low to start selling. It seems counterintuitive vs what we do in our everyday lives but when it’s like this you just want to keep buying with a stop below the last support. It might not have much further in it but wait for the turn. Nearly always will bounce back towards the high and fail, and that’s when you want to sell

  9. Hi peeps, I have FTSE resistance at 22, anyone have anything different ? It first stalled at 24 this morning then 27

  10. 7490-500 area is likely to be supportive now. Still bullish price action and have to see what happens at 7540-50 area. Probably worth a speculative short there and look for a back test of 7500. However, overall it’s still bullish so 7540 might not be the high of the move. Need to see whether volatility picks up now we’re at resistance

  14. Afternoon chaps,,,,hi again Sharma nice to see you back……I’m fully expecting an NFP figure in excess of estimates…let’s see good luck chaps….Mcg be interesting to see what happens at the 7540 level……if I were to guess I would say a dip and rise from here at 7520,lets see how it pans out …good luck…

        1. Would think dollar would weaken.. they will probably spin it as being weather related so not much will be read into this month’s read. I’ve sold 7525 just looking for a dip down to yesterday’s closing price at 7508. Probably won’t be too much movement this afternoon

      3. Sorry I meant I think it’s to early to sell….might dip a bit but think there’s more upside…

        1. 5 min chart is showing a bit of weakness coming in under 30. For me it’s worth selling here and then selling again near 7540 if stopped. Either way wouldn’t be surprised to see a bit of profit taking down to 7508

          1. It’s not an easy call but I think we will go higher…the Dow opens in 40 mins that’s goin to dictate direction…my money is on a push higher good luck Mcg.

  17. Roltrader just saw your message. I was long but had closed it for +250 and have been short since

  19. So markets ignore negative number due to hurricanes and dollar rises anyway … for now.
    Reckon will see a pullback later.

    1. I corked it up today, just lost a few quid after I won some back. Never mind, I am not upset cos I am still up. Basically I was long Dax; it dropped and spiked but the spike was modest and when I was trying to close that long – my connection gone, tried to close on the phone but it was negative. Had to wait it out and settle down on some loss, then won on the short, which I should have kept 12978 (I closed it when I’m supposed to go in, pathetic of me. I needed to do a school run). So I am not happy with the way I was trading. It also reminded me of my ordeal which I spoke yesterday about. It’s better to keep negative things in the past.
      Now I look at the chart and understand I ignored my strategy and did spontaneous decision based on rumors. Back to my notes and also I’m thinking to punish myself by withdrawing these 2 weeks profits.

    1. Lets see buddy. The price has just stalled at the moment based on the daily count. I would expect higher prices after the fall. 900 would be where i am looking to bail

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