1st November 2018
The bulls pushed on past the 7135 level yesterday to reach a high of 7160 before we have seen a modest pullback from there and back below the 7100 level overnight. The bulls will of course be keen to keep things above 7000, while the bears are driving it down from the 7135 daily resistance area, and the top of the Raff channels yesterday. Due to it being the first of the month we “may” see a rise initially as the new month money flows in, but I have feeling that we might be dipping back towards the 7035 level this morning.
Markets were spared a Hallowe’en horror show overall yesterday but their recovery could not prevent global stocks from registering their worst month since the eurozone debt crisis. The MSCI All-Country World Index slumped more than 8pc in “Red October” by the end of trading in London, after markets were rattled by fears of climbing borrowing costs and the end of stellar corporate earnings.
However, stocks ended their worst month since May 2012 on the rise after Facebook’s earnings lifted battered tech shares, and jobs data in the US renewed confidence in the strength of the American economy. The FTSE 100 swerved the worst of the damage in October but finished the month down 5.1pc, its worst performance in more than three years. The index still hit a three-week high as earnings from corporate heavyweights in Europe calmed nerves ignited on Tuesday by stuttering eurozone growth. The FTSE 100 rebounded 92.25 points at 7,128.10 but its gains were capped by the pound rallying on renewed hopes of a Brexit deal. The Dow Jones, which slumped into correction territory on Monday, advanced as much as 1.6pc as attention turned to Apple’s results.
China’s leadership signaled that further stimulus measures are being planned, as disappointing economic data showed that the current piecemeal approach isn’t working. The nation’s economic situation is changing, downward pressure is increasing, and the government needs to take timely steps to counter this, according to a statement from a Politburo meeting Wednesday chaired by President Xi Jinping. The signal of increasing urgency came just hours after purchasing manager reports showed an across-the-board deterioration that risks spilling into a broader drag on global growth. The world’s second largest economy is being damaged by its trade war with the U.S. and a domestic debt cleanup.
FTSE 100 Trading Signals, Forecast and Prediction
The 7075 resistance area is turning to support for today, and given that we moved above this it does still keep the option of 7215 alive, and a level that we may see soon. With S1 and a fib, as well as being previously significant we may well see 7075 hold first thing today. We are not far above it as I am writing this.
If the bears break that then the 2 hour coral line at 7034 and S2 and 7025 are likely to hold as support, and the bulls will be keen for a push back towards the 7100 level.
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.
Results
I keep a record of all the trades communicated to members via the morning email trade plan and those alerted live. See the results here.
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