Bulls in the driving seat for the moment | FTSE 100 Resistance 7315 | Support 7250

13th February 2017

FTSE 100 Support 7260 7249 7243 7221 7218 7190 7155
FTSE 100 Resistance 7267 7284 7300 7314 7327 7355 7365

Good morning, I hope you had an enjoyable weekend. The FTSE 100, and pretty much all equity markets in fact, ended last week strongly, with the FTSE double topping and closing at the 7270 level. We are still nudging the top of the Bianca daily channels and have infact tested and dropped off from the 10 day overnight at 7284.

The ASX200 (Australia) had a good session during Monday, rising steadily to R3 at 5768, helped by buoyant commodity prices across Asia. I expect that the FTSE will have an equally strong session today, if we break the 7284 level. There is resistance at 7315 after that where we have the 20 day Raff channel.

FTSE 100 Outlook and Prediction

So here we are again at the start of another week and it looks like the bulls are still in control for the moment. As mentioned above we have Bianca resistance at 7284 to start with then 7315 above that. Both of these levels I am thinking we will see in hours today, with the latter worth a short from. If the bulls break this then it means that January’s high at 7355 and maybe just above is likely to get hit. However, we have risen quite far quite fast and the daily RSI(10) is back up at 68 now, off the back of this rise from 7100. Therefore the bulls might start encountering a bit of resistance again. With any luck the market might move out of this choppiness that it has had for the past few weeks.

The 2 hour chart is bullish to start the week with support at 7249, and with the daily pivot at 7260 we might see some support here on any initial drop. The ASX200 was bullish today off the back of strong commodity prices, so the FTSE may well be the same . There is a 28 point divi this week as well on the FTSE 100 so the bears might be a bit hesitant to rush in too much early this week.

Recently the pattern has been bear Monday, bull Tuesday (a pattern that we had a lot of last year) and we had it again last week. I was thinking we might see that again today, however, with the ASX200 doing what it did during Mondays session, the downside might be limited to the 7249 level. However, if that breaks then we might well get our pattern and a drop down to 7220 where we have S2, 10 day Bianca and the 200ema on the 30min. For the bears to really regain control though they will need to take us below the 7155 level.

So for today, the levels I am watching are 7250 and 7220 for support, 7285 and 7315 for resistance.