Bulls are back but 7310 Resistance | 7222 support | Trump Tax Cuts

10th February 2017

FTSE 100 Support 7222 7216 7200 7197 7165 7150
FTSE 100 Resistance 7255 7259 7262 7269 7283 7290 7313

Good morning. The bulls came out fighting yesterday, rising from just above the 7177 support level that I had (it hit 7182 then bounced) and managed to hold above the 7200 level. There was a bit of a stutter at the previous high at 7225 however during the evening, helped by the US and Trumps tax cut talk, the FTSE managed the 7250 level. Overnight has seen further strength so we might well be on for the next level of interest which is 7269 and the top of the 10 day Bianca. But its a Friday so could go anywhere!!

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

For today we have initial resistance at 7259 which we are just testing after the overnight strength. As such we may well get a bit of a dip from here down to the pivot area at 7222 before, if the bulls are really playing the game, a further rise to test the top of the 10 day Bianca at 7269. If the bulls are serious then they may well try for 7300 or just above, while the bears are weak and failed to make that move below the 7160 support the other day stick. The rise has all been helped by the Brexit vote allowing the triggering of Article 50 and Trumps rhetoric about tax cuts yesterday. Now he has the judges in his sights about the immigration ban too. US politics turned on their head….. I’m the boss, do it my way!

So, usual caveat for a Friday and that is to stay wary and nimble, however the main levels I am watching are 7222 and 7259 to start with. We are just testing the top of the 20 day Raff at this level too, having popped above the 20 day Bianca at 7236 overnight. The 2 hour chart is also now bullish, showing support at the 7220 area. For once, cable remained at 125 whilst the FTSE moved without influence from that!

25 Comments

  1. Update from ydays board…..shorted this morning at 53 dumped it for a loss….now long from 58.8…. Good luck all.

      1. Morning Jack, I closed it manually ….as soon as I knew I was wrong….I don’t use stops apart from locking in profit….

  2. Hi nick. I’ve been following you for a while. I’m thinking of trading but may start with a demo account. I was reading your outlook for 2017 which you posted before xmas and was just interested in knowing what your thoughts were now and whether you still think 6500 is a target for the first quarter?

      2. Thanks Nick

        I suppose the real question is how far can it go before it dips. I’m reading on other boards people talking of 8000 ftse and 22000 + on Dow!! it does seem very very strong currently!

        1. I get worried when people start throwing ludicrous predictions about! We are still below that 7355 level from January. We are nudging the top of the daily channels currently. It all feels a bit manufactured……

          1. Yes it worries me too. Maybe I should read less as was hoping to start building in shorts to hold but am a bit apprehensive at the moment due to the trump effect!

        1. I see cable down at 2447 another couple of hundred possible pips to the downside I would have thought but I’m not shorting cable from here myself…

  5. Out of my Ftse long at 67.8…… No point in being greedy on a Friday…..recovered my earlier loss and made a very good gain…..TYVM Ftse ….that’s me done,have a good weekend all…..time to enjoy it :0)

      1. Thanks Nick, its been a good week for me, next week though will be a whole new ball game, hoping to keep some consistency going if I can, enjoy your weekend :0)

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