Quote from Nick on 4th April 2019, 9:37 am

4th April 2019

Bank of England governor Mark Carney has warned that there is an "alarmingly high" risk of an accidental no deal Brexit. The governor blasted claims that the UK could still enjoy frictionless trade with zero tariffs on WTO rules, calling them "absolute nonsense" and "fiction". Mr Carney  said that "real progress" had been made by businesses and the Government in no deal preparations and ruled out extending his term beyond January 2020, replying "absolutely no" in an interview with Sky News.

Meanwhile, the services sector contracted for the first time in almost three years in March as the UK economy was brought to a standstill by the Brexit paralysis.

Although growth is starting to rebound in China and the eurozone, there are more signs that the US economy is cooling. The ISM non-manufacturing index, which tracks the services sector, has tumbled to a 19-month low while IHS Markit's gauge of the largest part of the US economy has edged away from February's seven-month high. NFP tomorrow will be closely watched.

(adsbygoogle = window.adsbygoogle || []).push({});

FTSE 100 Trading Signals, Forecast and Prediction

The 7420 area still looks decent resistance for the moment, and if we do see a climb towards the 7418 level today then a short here looks viable still. The 2 hour chart has gone bearish now after the drop overnight, and there is also decent resistance at the 7403 level from the 30min coral for the moment. I have put 2 shorts in the plan, you can either fade in or treat them separately. If the bulls were able to push above the 7420 level today then we have the top of both the Raff channels at the 7485 level and that is the next logical area for the bulls to target.  The daily RSI has just dipped back down through 70 so I am thinking that we get a little bit of a pullback over today/tomorrow and then possibly further upside after that.  We are also getting nearer to NFP news tomorrow.

[caption id="attachment_14705" align="aligncenter" width="821"] FTSE 100 Trading Signals, Forecast and Prediction[/caption]

For the bears, there is 2 hour coral support at 7365 for now and as you know I have been looking for a pull back to this level in the short term. It looks like we will see that today. If that holds an initial test then we should see the bounce up towards those resistance levels. If it breaks then we have decent support at 7347 below that, then 7318. I think that the coral should hold an initial test.

The ASX200 (Australia) was bearish Thursday and I think that we may follow a similar pattern, albeit with a couple of attempts to rally up to the resistance levels. I am also still holding the gold long from 1290 from yesterday and that has moved up a little bit so far - may be front running some equity weakness. The 2881 still looks a decent resistance area on the S&P as well. Thought the Dax would have at least tried for 12000 yesterday as we have the top of the 20 day Raff here.

Recommended Broker

IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!

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.

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 live trading room and webinar group membership for discussion and realtime trade updates