Can the bulls make the break stick for 7600 | trading help signals analysis

11th October 2017
Crucially for the bulls yesterday they managed to break the 7535 resistance level, with only a meagre 10 point drop from the bears from this level. Markets continue to grind higher on non existent volatility, with Asian stocks near decade highs currently. The S&P dropped back from the 2555 level it spiked to on news of Walmart’s $20bn share buy back, and stayed around 2550 for most of the session. The Fed minutes are out today so may give some confirmation for the next rate rise (December?). We also have a 7 point dividend for the FTSE 100 today, so will more than likely see some strength in the closing part of the session as dividend hunters appear. 2 hour support is now at 7542 and it still looks likely we will get that 7600 this week on the FTSE 100.


FTSE 100 Outlook and Prediction

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

Looking at the 30min chart there are a lot of negative RSI divergence signals showing, along with the daily RSI at 72. However, still it goes higher with minimal reactions at the resistance levels. It certainly looks like we will get the 7600 or slightly higher, level this week, though it will depend on the S&P pulling above the 2550 level. There are amore and more calls for a correction coming through, which probably means a bit higher yet as the swing shorters are feeling the squeeze now.

For today the 2 hour chart has gone bullish again after that rise from 7500 yesterday, and is showing support just below where we are at 7542. With the green 30min coral also here, and the daily pivot at 7532 the bulls could use this level as a spring board for a push up to 7585 where we have a key fib level. Yesterday’s resistance at 7535 will also, in theory, becoming support.

Below the 7532 level then the bears will be keen to get the price back below 7500, but with gold dropping off from the 1290 level and testing the top of the daily channels here, we may see further rises in equities. The S&P is at the bottom of the 10 day Raff channel here at 2548 as well, (Bianca 10day here too), and thus could easily rise from this level.

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38 Comments

      1. Where are you exiting? I’m thinking today we get a range of around 7530-60. Then shorts will be good after looking for 7400-7440 later in the week/next week.

        1. Looking for low 7500s. The key areas haven’t changed. 7490-7540 is the range and only once 7490 goes can we think about 7400. Likewise, if 7540 goes properly then there’s not much resistance until 7600. I see the out of hours high as an overthrow of the 7540 pivot area. Difficult to trade when it pushes the limits but the principle still applies

          1. Looking at the price action today. I do feel you could be right with a pullback to 510 here. Before a meaningful rally. I still prefer the 7530-7560 range for today.

  2. Sold my all-in gold position on failure to proceed to 1300 with due haste for 2% return in a week. Not bad.
    All-in ftse at 7530 initial target 7560 hoping to zip past that for 7600.

  3. I am cautios today after yesterday. Had modest longs 27,33,38,40 on Dax. But now closed. I think Dax is ready for another short surprise before 2.30

    1. It just touched previous spike low at 24 (6.30 yesterday) at 23.7. So it actually fell a fraction lower. I don’t like those things, sometimes they suggest. Plus today’s top spike was at 77.5 but yesterday at 6.30 it was 77.8, so it is slightly lower. It may also suggest we trapped in a sideways for now and the break on of those areas would lead to movements.

  4. Sure is dull. Must be alot of short stops accumulating over 7555 area. Would hope to see that challenged on a wednesday in the next hour or so or im bailing.

      1. But I need a correction otherwise the pattern is weak, not supported with any pull back. If it drops here it may create a lower high. But I need another higher low to support long. Don’t worry about me, it’s me rambling trying to be more cautious today after yesterday.

  6. That is how Dax knows to upset me. Everything pulls back, Dax sitting. Typical. What can do with Him.

  7. 7550 should be attainable today if it hits it I will exit and live to fight another day. Dont fancy being in overnight.

  8. dull day are worst as hard to make a call. even you r in blue you want ti keep it for next level but it just goeback.. gggrrrhhh

  9. Please, just pop to 7550 and allow me a gracious exit with some sense of dignity and self-respect not scurrying out the window like a rat from from a warehouse fire at 7528.

    2. Lol.. just take 10 and wait for the next one. If we see 7550 at the closing bell I think you might as well hold as it’s probably on the way to 7600 then. Otherwise the choppiness and holding under 7540 suggests bears gaining control of the short term trend

  12. Also.. is it just me or do they make it harder for the divi nowadays? I swear a couple of years ago you could just buy after 4pm and it was pretty much guaranteed to hold up or rally at the bell. Now it always seems to be selling off in to the close. Which is crap because you don’t want to be short and pay it out and you can’t be long either!

  13. Dax can proudly say today: “I did it my way”. As usual. As I didn’t get pull back that’s it for the day. I think you’d all wish Dax’s performance on FTSE today.

  14. Looking at daily charts wouldnt be surprised if stock markets blast higher tomorrow. Bull flags and all that.

Comments are closed.