24th October 2017
Well it took all day but late on we finally got a drop from the 7540 resistance and a rise in gold so we were well positioned for that move. I hadn’t expected the FTSE 100 to drop quite as much as it did (it tested 7500) otherwise I would have held that short a bit longer.
The bulls defended the bottom of the 20 day Raff channel first thing at 7510 so we got the expected rise during the day, but the bulls still failed to push above the 7555 level. If the bears manage to get it down to 7485 I am still thinking that area will hold as support. Overnight we have had some strength off the back of Asia, with a rise back from the 7500 level.
FTSE Outlook and Prediction
For today I am thinking that the bears might well manage to test the 7485 support area, if they can break 7500. It’s still a case of buy the dips though, and a dip down towards the 25ema on the daily at 7472 would be almost ideal. Talk yesterday (swiftly denied of course) that the US was readying nuclear bombers caused a slight wobble, but again the bulls have fought back.
Asia put in a strong performance, with the ASX rising slightly during their session. We are stuck in a bit of a range between 7500 and 7540 at the moment and will break that soon, probably to the upside, something major notwithstanding.
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