FTSE 100 7441 still resistance with 7469 above | Trading signals analysis

3rd October 2017
Once again we got the bull Monday pattern to start the week and the new month. Historically Q4 is often the strongest and it certainly bodes well for that to be the case again this year. Interesting article on Bloomberg this morning that was presenting a strong case for further upside as well. Click here. If the FTSE100 bulls can break the 7440 resistance level, then we will likely see the 7480 and 7520 levels this week.

The S&P got a decent rise to the 2527 then a better drop back, before being bought up again, but played the pattern better than the FTSE yesterday with the rise and dip. The prospect of US tax cuts helping propel the US markets to new all time highs. We also had strong factory data yesterday.


FTSE 100 Outlook and Prediction

FTSE 100 Prediction Support Resistance Trading Signals
FTSE 100 Prediction Support Resistance Trading Signals

We are still sitting at the 7441 resistance level from yesterday and I am expecting a bit of a dip down today. Bear Tuesday after all! The ASX200 had a sharp fall overnight, even though they left monetary policy unchanged, and we may well follow suit. Oil declined yesterday as well which may weigh on the FTSE 100. A lot of the FTSE 100 strength yesterday came from cable declining – dropping further and further from the 136 level recently achieved. So much for all those “experts” that were taking about 140!

For today I think the bulls might try an early push but we still have some resistance around this 7441/7447 level. If they were to push above this then the fib level at 7469 looks to be worth a short, with 7482 above this. The daily chart has gone bullish though, so any dip may well only get as far as the 7351 area which is support on the daily, while the 2 hour chart is still showing support at 7405 for today. As such, I don’t think that we are on the cusp of any major sell offs at the moment.

If the bears were to take us down from the 7440 area (or maybe just above) then 7415 and 7390 are the first main areas of support prior to the 7350. We are again testing the top of the Raff channels with resistance at the 7447 and 7465 levels, so we might see a bit of a pull back ready to move higher later in the week. Still bullish overall, but expecting a bit of a pull back today.

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21 Comments

  1. The other way of looking at this is the Ftse is lagging the Dow and Dax….and could get a really strong push higher today…

  3. Can anybody update me, please, is Dax closed today or something? It shows 8 point spread on mine and market is barely moving.

  5. Buyers getting in before earnings.

    Same reason as the last eight years – money has to be put to use, and managers will be sacked if they get left behind. Doing nothing isn’t an option for them. Plus buy-backs.

  6. Melt up underway.. looks like we will break the 7440 pivot this week, 7480-90 the next area of interest but might take a few days to get there

    1. Strange how it all changed on a dime….we couldn’t get much above 7440 this last 6 weeks or so……..nobody wanted it around 7200 now it’s all rosy again..if I was to guess I would think its pushing up towards that 7600 area we considered back in the summer….i think when we all think it will struggle around 7440….it will climb exponentially…..

      1. Just got to follow the price action.. for me an uptrend is defined as staying overbought, shallow pullbacks on hitting resistance, higher lows and higher highs, plus closing near the highs. The last 3 days we’ve been doing all that which tells you we go higher unless the pattern breaks down. Similarly with downtrends it’s the inverse, but the countertrend moves are usually a bit bigger. Anything else is sideways price action which is actually most of the time. Over the summer, it was clearly going sideways.. the only surprising thing was with the exception of the move to 7200 there was no downtrend type activity. Could be a sign of strength but will just take it day by day and see where this rally fails. So far looks good for testing 7500 area then after that can see the ATH in view. Basically they’re buying because everyone else is so there’s a performance chase with it being a new quarter. Won’t be as simple as rally right in to year end but need to see price showing some exhaustion before looking for shorts again now

        1. Words of experience and wisdom from Mcgcapital. Always look forward to your measured objectives comments

          1. Yes your right Zentrader ,Thx Mcg you can’t buy experience….although we do buy it indirectly when we loose,it’s just it takes some people longer to develope the discipline and patience required…

      2. At some point FTSE will shoot up to compensate Dow and Dax reaching all time highs at the moment. FTSE won’t want to be left behind. It may even get to 7700. We shall see.

  9. Rsi on the Daily approaching 70…..no reason to think it could sell off yet…in fact any further drops on cable and it could surge up in my opinion….

    1. It looks very similar to the May rally to me. Would expect a fairly decent correction off 7540 area if it goes up there without a pullback. Then we’ll see if it has the strength to go to new ATHs.

      1. I see you’ve taken a line across the hourly and there’s resistance between 17 th May and 17th June at between 7538 and 7541….. It’s hit the level 7 times and hit the peak of 7599 on 4th June….hmmm…..so long as we have no surprises from NK it looks like a break of 7500 is on with a target of 7540 Thx Mcg…Mind you we have 5 high volatility data points between Weds and Friday to contend with….have to be on it I reckon…….

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