22nd September 2017
Turned into a fairly flat day yesterday across the board as the markets digested the Fed meeting results from Wednesday night. Trump upped the pressure on Kim Jong Un’s regime with a fresh set of sanctions against individuals, firms, and financial institutions doing business with North Korea. People’s Bank of China has also ordered local banks to cut off business with the rogue state. In response, overnight Kim Jong Un has threatened to test a hydrogen bomb in the Pacific. That’s weighed on markets overnight as you would expect.
Theresa May is to deliver a speech on Friday afternoon in Florence, Italy to clarify her position on the terms of an exit from the EU and what the relationship between the two parties will look like after the divorce.
FTSE 100 Outlook and Prediction
It’s all kicking off yet again with North Korea which may well weigh on markets ahead of the weekend and we also have May’s speech today on the Brexit plan (or the current thinking anyway). For today I am expecting a bit of a dip initially and then a possible bounce around the support level at 7220 to 7225. If we do bounce there then we may climb as high at 7260.
However the picture does look quite weak at the moment with 2 hour resistance kicking in now at 7256. The bulls might struggle a bit to break above here, but if they do then we may well see a rise back to the resistance level at 7309.
It’s of course a freaky Friday so may well some funny antics, and also a dip down towards the close in case NK does do this hydrogen bomb test they are talking about.
So, watching 7256 for initial resistance with 7309 above that, and support at 7220. If the bears break below this then 7182 is the next major level to watch where we have the bottom of the 20 day Bianca channel.
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Closed short hedges last night at 40. Holding ftse longs and dow shorts
Yesterdays daily engilfing candle is negative and sugfests bulls are running out of steam.
But ftse is trapped in the 7180 -7300 range and probably needs a break, that said chart is pojnting down.
Went long gold at 1293 this morning.
Heading out for the weekend, but if todays low of7233 has held up early next week, will add to longs. HANW everybody.
Covered my shorts this morning at 7265 when there was no follow through below 7250. However, out of the covers in the 7280s and see whether bears can hold the 7290-300 area again. Previous analysis still stands as long as 7300 holds
Break and hold of 7300 so it’s advantage bulls now. Wouldn’t at all be surprised if it’s a failed break up of the pivot just like the one at 7460 a few weeks ago. Have to give bulls the benefit of the doubt though now until 7290-300 breaks