6th March 2018
The FTSE 100 set up a double bottom bounce nicely at 7060 yesterday and rose towards 7150 after hours. There was a small bearish reaction at the 7100 rally point in the morning, dropping down to test support before rising along with everything else. Overall it was a pretty bullish Monday again. The FTSE 100 two hour chart is now bullish and showing support at 7085 so any dips to this area are worth a long. The S&P 2 hour chart gave support at the 2674 level yesterday and it climbed well from there.
The question is of course whether we have seen the short term lows for the time being and its panic over, or are the bears going to come charging back. We were at the bottom of the daily channels after 4 days of consecutive negative closes, so a bounce was technically due, its just a case now of seeing if its sustainable.
The trade war fears were shaken off yesterday after Trump indicated he could abandon his steel tariff if other countries agreed to trade changes as his allies cleared the way for a possible change of mind. We will be looking at NFP on Friday for clues on rates and the US economy.
FTSE 100 Forecast and Prediction
We have continued to build on yesterdays strength overnight with a strong Asia session. However, we are on the 200ema on the 30min chart with resistance at 7157 so may see a bit of a dip down from here or just above where we have a fib level at 7172. There is a possible gap close with yesterdays closing price at 7116.
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