Quote from Nick on 27th November 2018, 11:02 am

27th November 2018

Turned into a decent bull Monday yesterday but without the dip down to close the gap and test the support at the 6950 level. The bulls defended the 7000 level well. 7018 worked as a barrier for a few points first thing, but the bulls had the 7050 target in their sights for most of the day, but failed to push above it. Overnight we have dropped down to the 7003 level but rebounded slightly. We now have 2 hour support at 6989 and 6974 for today, but its set up for a bit of a bear Tuesday at the moment. The bulls will be trying to push towards the 7046 and 7058 levels again today, and ultimately towards 7080.

European stock closed on a positive note helped by an improvement in Italy and oil prices rebounding. The Italian government said it is now open to changing its budget target to be more in line with European spending rules.

Oil prices rebounded after fears of a supply glut gripped the market last week and sent prices plunging below $60 per barrel, hitting a one-year low. As the London Stock Exchange closed, the FTSE 100 was 1.20pc up at 7036.00 after spending the day in positive territory. The FTSE 250 was also up 1pc at 18,719.12.

Frankfurt's DAX 30 index closed more than 1.45pc higher at 11,354.72 points and the Paris CAC 40 gained 0.97pc to 4994.98.
But the pound was flat against the dollar and the euro, closing 0.03pc and 0.05pc down respectively. Sterling had barely reacted to EU leaders signing off Theresa May's Brexit deal over the weekend. US stocks bounced back on the success of a record Black Friday and analysts have predicted Cyber Monday will also set a record. Amazon, Best Buy, Wal-Mart and Target were all higher today as a result.

President Donald Trump said he’ll likely push forward with plans to increase tariffs on $200 billion of Chinese goods, indicating he would also slap duties on all remaining imports from the Asian nation if negotiations with China’s leader Xi Jinping fail to produce a trade deal. In an interview with the Wall Street Journal, Trump said he’s prepared to impose tariffs on a final batch of $267 billion of Chinese shipments if he can’t make a deal with Xi when they meet at the Group of 20 meeting in Argentina, which starts Nov. 30. The rate could be either 10 percent or 25 percent, Trump said. Apple Inc.’s iPhones and laptops imported from China could be hit by new tariffs, the U.S. president said.

Stocks still have a lot of ground to make up, but in the US on Monday beaten-down tech shares led the strongest session for U.S. equities in two weeks, extending the run of turbulence that has made this month one of the wildest of the past five years. The S&P 500 roared back from the worst week in a month as investors speculated a strong start to the holiday season will keep economic growth on track.

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FTSE 100 Trading Signals, Forecast and Prediction

For today I am looking at a few main areas. Initially we have resistance at the 7050 level which was yesterdays high and we have rebounded towards from the overnight lows. Above this the more significant resistance area is at 7082 to 7092, and its this level that the bulls need to break to enable a push higher towards 7200. As such I think a short at the bottom end of this resistance zone is worth a go for today as it will double top quite nicely with the most recent high then. A pulllback towards the pivot at 7012 is possible before a push higher again and a possible break  higher tomorrow/later this week. The bulls will of course be keen to defend the 7000 level and there are now a few supports showing at this area.

These supports are on the 2 hour chart at 6989 and 6974, as well as the 200ema on the 30minute chart, and it is this zone that I am watching for support - 6975 to 7000. Again, its worth long here for a push back towards the 7050 and 7090 areas. The ASX200 (Australia) had a bullish Tuesday, helped by oil stabilising.

The latest rhetoric from President Trump about tariffs did not see as much of a bearish reaction as on previous occasions (the more you say the same things the less effect they have!), so we 'should' hold above 7000 for the short term. Cable has dropped off again and is around the 127 level which will help the FTSE100, though of course it remains to be seen how the Brexit deal fares in Parliament - and that will effect the pound and also the FTSE100. As well as general sentiment as most people you speak too are getting quite bored of Brexit deal talk!

So for today, keeping an eye on those main areas and trades accordingly off them, though if 6975 breaks then a drop down towards 6900 looks like it will probably happen so might be worth flipping short at 6970ish to target that. Initially I think we see a kick up though. Good luck today.Broker

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