20th November 2018
Turned quite bearish yesterday once the bulls had managed to get it to 7070, falling back all the way to that 6970 support area again, unfortunately by the time my long order there had expired! It did hold though and hasn’t broken overnight (though not exactly bullish off it). A break of that 6970 level sees 6900 though, with 7012 as resistance first thing this morning. The weakness yesterday was driven by US tech shares, with the Nasdaq down 3.4%, on renewed concern the trade war will hurt global demand and disrupt supply chains for the major technology companies that have carried the bull market for almost 10 years. With the US closed Thursday for Thanksgiving, we may remain lacklustre for the moment.
FTSE 100 Trading Signals, Forecast and Prediction
We could be on for an interesting one again today. MPs efforts to topple Theresa May have stalled for the moment, though business leaders clashed with the government yesterday over the Brexit deal. As the markets closed yesterday sterling was trading 0.35pc down from session highs after seeing some volatility in the wake of the PM speaking at the Confederation of British Industry (CBI) annual conference. She said that her Brexit deal would give Britain “control over our borders” by bringing an end to free movement once and for all.
Following the decline from the 7070 level yesterday the 2 hour chart has gone bearish as you would expect and is showing initial resistance at the 7012 level. We also have the daily pivot here so my well see a stutter at this level on any initial rise this morning. Above this then we should manage R1 at 7055 at least, though the bulls will be keen to break above the 7075 level as that opens up the 7090 again (we dropped off this Friday) and also a potential rise towards 7113 (R2 for today).
On the flip side, if the bears break the 6970 level then we are looking at a drop down towards the 6905 level. A tentative long around this level is worth a go, though there is also some key support slightly lower at 6870. Should that be tested today (don’t think it will though) it is worth a long.
Broker
IC Markets – If the increase in margin requirements means you need more liquidity you can trade offshore with one of the leading brokers outside of the EU. At the moment IC Markets is allowing sign ups from the UK.
Membership
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram Chat room and webinar group membership for discussion and realtime trade updates