Bulls fail to break 7525 | US treasury yields spike | 7425 support | Trading analysis signals

Bulls fighting back overnight but 7280 7320 resistance | 7217 7180 support | Trading community chat room

4th October 2018

The FTSE 100 climbed steadily yesterday towards the 7510/22 resistance area, unfortunately from 7478 and not the long order at 7475 but well done those of you that went long anyway! The bulls however couldn’t push through the 7525 resistance level and we were then dragged down a bit after the bell as the US markets dropped off their record highs. At one point it looked they were about to make history again with a record close. The S&P has fallen sharply since hitting 2940 and is currently at 2914; in comparison the FTSE 100 is still just below 7500. 2906 and 2902 are once again S&P supports to watch. The drop was due to a spike in US treasury yields to levels unseen since 2011 as indicators about American jobs and services showed continued strength.

On the news front today highlights include weekly US jobs data, US factory orders, Banxico rate decision, ECB’s Nowotny, Rehn, Coeure, Fed’s Quarles, supply from the UK, France and Spain.


FTSE 100 Trading Signals, Forecast and Prediction

To start with today the 2 hour chart is positive with support at 7492, however there is still a couple of supports of note below this at 7475 and 7450. The bulls won’t have been helped by the US fall continuing overnight, however if they are quick out the blocks again as per yesterday, and can defend the 7492 level then we should see a more bullish day. Generally the FTSE has remained quite upbeat despite the S&P falling nearly 30 points from its high yesterday.

If the bears were to break it down today then that 7425 level is still worth a long.

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