Can the bulls defend the 7200 area? 7120 support below | 7475 resistance | Learn to trade

Can the bulls defend the 7200 area? 7120 support below | 7475 resistance | Learn to trade

10th October 2018

Yesterday saw the FTSE 100 get a low of 7183 and has since managed to regain some ground above the 7200 area, though the bulls will need to get some momentum above 7250 now to try and reverse the run of large red daily candles. A stout defence of the 7200 area this morning is required.

In the US, Federal Reserve Chairman Jerome Powell’s guiding light — inflation expectations — look like they are still well anchored. Expectations for inflation one and three years in the future were steady in September at 3 percent, according to the Federal Reserve Bank of New York’s Survey of Consumer Expectations. That will help monetary policy makers, who have said that they’re willing to tolerate some overshoot of their 2 percent inflation goal. The bad: President Donald Trump said the Fed is moving too fast with interest-rate increases. “I don’t like” what the Fed is doing, Trump said Tuesday at the White House. “I think we don’t have to go as fast” on rate hikes.

We have an 8.6 dividend today. The fear/greed indicator has dropped to 23/100 and the media was yesterday finally talking about the sell off in UK shares. A coupe of reasons to start thinking the low might be in or near!

FTSE 100 Trading Signals, Forecast and Prediction

With the 7180 area holding yesterday and the move back above 7200, the 2 hour chart has gone weakly bullish with support at the 7208 level. We are looking to open at the same level we closed at yesterday, around 7235, so may see an initial dip down at the open towards that 2 hour support. If that holds then we should see a rise towards the cluster of resistance levels around the 7270 area.

If the bears want to short the rallies still, then this 7270 area looks to be a decent shorting spot. We have R1, and also a key fib here, though the 200ema on the 30min is slightly higher at 7310 initially. On the daily chart the swing short entry level has dropped down to 7401 now so on the bigger times frames I am watching this, and also the 7120 as support as mentioned previously. That’s the bigger range levels for the moment.


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