13th October 2017
The FTSE 100 managed to push above the 7545 level yesterday and continue the sideways chop as it rose to 7565 before dropping down to 7530 again, but did close at a new high which grabbed some headlines. The Dax long at 12950 worked well as we saw a revisit to 13000 on that. The gold long didn’t really do much during the session (but has risen back towards 1300 overnight). An earthquake in North Korea yesterday evening was probably another nuclear underground test, but didn’t have much of an affect on markets though the S&P is still failing to push above the 2555 level. Will Friday the 13th be unlucky today!? The trend is still upward as we are making higher highs so shorts are still risky.
FTSE 100 Outlook and Prediction
For today I am thinking that the bulls will take another run at the 7567 level and possibly break above it to test the resistance area between 7584 (R2) and 7594 (fib level). R3 is just above this at 7600, so a stop above this is needed for any shorts around this area. Overnight the ASX has been bullish during their session with a strong rising trend up to R2.
The FTSE 100 is being very cable driven at the moment, which is quite volatile as Brexit negotiations continue. Cable rising fast caused the FTSE 100 to fall fast from the 7567 level yesterday. Despite that making things complicated the trend is still up on the FTSE and we have the bottom of the 10 day Bianca channel at 7524 for this morning. We also have the 200ema on the 30min at this level so we may well see this area hold as support. If it were to break there I am watching 7490 as the next level. The bulls will be keen to end the week strongly though I suspect.
The 2 hour chart is still bearish though, so the bulls will be keen to break and hold above 7550 as soon as possible, but its worth noting that gold has risen a bit from that 1290 level suggesting a little bit of safe haven buying. Still a possibility for a rise to 1312 on gold.
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