FTSE 100 Resistance 7175 | 7085 support | May Trump Meeting | 0.6% UK GDP

27th January 2017

FTSE 100 Support 7154 7141 7125 7094 7090 7082 7057
FTSE 100 Resistance 7163 7166 7172 7176 7187 7339

Good morning. Well not too much to say about the FTSE 1000 yesterday as it didn’t really do anything! A very tight range between 7150 and 7175 and that was about it. Gold continued to slide, whilst the Dax continued to rally. US consolidated on its new record breaking high with the Dow holding above the 20000 level proving its not going to be a short term thing, but the S&P failed to hold 2300 which had briefly breached.

Despite data published by the Office for National Statistics showing the UK economy grew by 0.6pc in the final three months of 2016, matching the expansion in the previous quarter, the FTSE 100 still failed to move much. Thursday’s figures mean the economy expanded by 2pc over the year. This afternoon at 1330 we have the annualised US GDP, forecasted at 2.2% versus 3.5% previous, as well as durable goods, consumer sentiment and inflation expectations.

We also have the PM in the USA meeting Trump today and giving a joint press conference later. Could provide some clues of the relationship between Britain and the US going forward.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

As its Friday I wonder if it will have a bit more movement than yesterday….. usual Friday caveats applies to remain nimble today. Initially I am looking at a dip down from the 7175ish area. The daily pivot is at 7166. We also have the top of the 10 day Bianca at 7172, the 30min 200ema at 7176 and R1 at 7182. So a cluster of resistance levels here, which if they hold and the bulls don’t break above 7175 with any vigour, may well see us get a drop down to that 7135 low area again. If that breaks then we are looking at 7085 though I don’t think today will be negative enough to go that low (famous last words maybe!). If we do see 7085 then a long is probably worth a go here.

The 2 hour chart has gone to a weak bear set up for me after we trod water for most of yesterday on the FTSE, though the bulls will be keen to get prices back above 7175. If they do manage that then entering a long at 7175 for a run towards 7200+ could pay off. A lot of traders will be watching the May/Trump press conference for clues.

40 Comments

  1. Great shout on 75 resistance Nick 🙂
    I’ve gone back to basics
    1) Get up
    2) Make tea
    3) Short the opening
    4) Make toast
    5) Take profits on way down

    1. 7100 before 7200 is also an option young man…
      But I’ll take a huuuge +5 on that overbought short anyway.

          1. At last, some movement.
            The breadth of that consolidation period around 58 would normally indicate a reasonable rally, but I’m just taking a whopping +5 again.

          3. Been away for a bite to eat….I see we hit 80 again pre Dow opening…..it’s just a matter of time in my opinion before it pushes through this resistance level…..been wrong many times so time will tell but that’s my take on it….

            1. Yes, R1 is 7182, hasn’t broken yet. SP off that 2300 though…. and the Elliot Wave experts reckon its toppy here…. down to 2180 or lower…

  4. I thought you day traders would have been having fun this morning in the 50-80 range! Well, that’s what my hourly chart tells me has been happening. Frankly, I’m glad I’ve a farm to run and only check in on the market every couple of hours, because this FTSE would do your head in.

    Still sitting on a nasty underwater FTSE position, and have been stopped out his morning for £££ in long DAX. American longs have been sitting there on average going nowhere, tech down, wall Street up. The ray of sunshine has been my two long dollar trades, against pound and yen. So far 90 pips on cable and 180 yen.

    Eurgbp appears to have just made a marginally higher high, with a nice round bottom below on the hourly, so perhaps there’s a trade there, and might inject some response into this vegetative FTSE?

  5. Hurrah, is this the push onto 7200 or another false summit, wallowing in a massive 18 pts today.

  6. With this protectionism and import duty approach that TT seems to be in favour of, how does this sit with the likely future profits of firms like Apple?
    After all, Wall Street hi flyers were leaders in exporting jobs and production. What happens to their domestic market when there’s barriers put in the way to importing the product?
    Apple, Nike, Walmart, IBM, Cisco to name a few?
    I think the DOW could see the 19900’s this afternoon and sentiment spill over to us. Famous last words, no doubt.
    Averaging 79 short, just took a comfort +5 on half, not exactly putting my money where my mouth is.

      1. Only if they broke it to the upside convincingly…… Which they haven’t. So have been shorting off it all day! And longing 7150. Gotta love a tight range!

        1. It was a great call Nick, thanks. How many points are you running today? I can’t complain on 21 but still under water with 7200 long.

    1. Yeah, it’s reasonable to take a bit of defensive covering ahead of and at the DOW open with a pinch of salt.
      They’ve done their shuffle either side of unchanged now it’s time for a proper move.
      Probably be ghastly sideways stuff though.
      Got any volume figures handy? Gut tells me it’s been very light.

      Replaced a bit of short.

  8. Looks like a push on the Dow from the 80 area could be just the incentive Ftse needs to break through 82…..we will possibly need the Dax to cheer up a bit too…..and cable to sell off…..

          3. Doing that really irritating thing, taking some blue ink and leaving the red running. Not much red now though.

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