Quote from Nick on 24th January 2019, 10:51 am

24th January 2019

The FTSE 100 closed down 0.85pc, after a 0.99pc drop yesterday, making it the worst start to a trading week this year. It closed at 6,842.88, down from yesterday's 6,901.39.

Markets have been affected by the possibility that Article 50 could be delayed. International Trade Secretary and prominent Brexiteer Liam Fox hinted that he could accept a delay to the March 29 deadline if it gave enough time to create a divorce agreement. Labour's John McDonnell said it was "increasingly likely" that the deadline would be pushed back. The EU, France and Germany said they would tolerate an extension.

Sterling continued its climb since yesterday, breaking the $1.30 mark and currently trading at around $1.3063. It has gained around a cent and a half against the dollar since yesterday morning. It is trading at around €1.1468 against the euro.

Concerns about global growth affected markets in the US as the S&P 500 was down 0.36pc at 2,623.25 but the Dow Jones was up 0.24pc at 24,463.98.

Goldman Sachs

Goldman Sachs has given a 50pc chance of a "later, softer Brexit", as just nine weeks remain for the UK to come to a withdrawal agreement that wins the support of Parliament. The bank believes the most likely outcome is the EU withdrawal agreement will be agreed by Parliament, after an extension of Article 50 to June. It predicts the pound will strengthen against the dollar if there is an agreement.

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FTSE 100 Trading Signals, Forecast and Prediction

I am thinking that we see a bit of a climb towards the resistance levels at 6888 and possibly 6925 today. We are being driven by Brexit sentiment with talk now of pushing back on the 29th March leaving date. Looking at the 30min chart to start with today we have some supports at this 6845 level, and indeed we bounced off the low at 6810 yesterday evening as the US bounced back from its lows.

The 2 hour chart is still bearish though with resistance at 6905 and 6923, the latter being the coral which as yet remains untested. If the bulls can break the initial resistance at 6888 where we have the 200ema on the 30min, along with a key fib, then we should see that 6923 level tested.

[caption id="attachment_14149" align="aligncenter" width="821"] 6800 support with 6890 and 6925 resistance | Possible Brexit delay | Learn to trade | analysis | signals[/caption]

If the bears break below 6845 then we should see a drop down towards the bottom of the 20d Raff channel at 6800, and also we have S1 and a fib here at 6795, hence putting in the long in the trade plan - though we may not get this low and I am thinking that 6845 holds. If we have a decent start from the bulls then the 30min coral should go green and lend more support to this 6845 level.

We have dipped below the 25ema on the daily chart which was 6854 support, in a bit of a blow for the bulls but a move back above that and holding above, will help the bulls tomorrow/next week for a push back towards the 7000 level. However, 6988 is showing as daily resistance so they might only manage that, if they can break 6927.

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