FTSE 100 Resistance 7205 7250 | Support 7176 | NFP beats estimates

6th February 2017

FTSE 100 Support 7176 7154 7149 7148 7081
FTSE 100 Resistance 7186 7195 7205 7217 7223 7248

Good morning, I hope you had a good weekend. Friday turned into quite the bullish day and with the FTSE 100 closing pretty much on the 7200 resistance level we could be on for a push up towards 7250 today. Friday also saw a push through the 7170 resistance level as well as the daily channel resistances in which it turned out to be a strong day. The NFP U.S. jobs data showed hiring increased but with weaker earnings gains, while the S&P closed within 1 point of its all time high. However the political landscape in the US is still a little chaotic, with Trumps travel ban being overturned by a judge.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

For today I am looking at Fridays resistance and the daily pivot at 7175 to hold as support on any initial dip and then a rise towards the 7248 level. I am thinking we will get a dip back from here towards 7200 before we get a bit more a bullish push up over the next week or so. Certainly for today those are the two levels that are of immediate interest. Below 7175 then we have support at 7149 on the 2 hour.

However, we are still nudging the top of the daily Biana channels at 7186 and 7195 whilst the top of both the Raff channels are at 7205 and 7215 so the bulls might not have it all their own way. As such I wouldn’t be surprised if a quick charge from the bulls out the blocks sees a bit of a dip back form the 7205 area to test that 7175 support. If the bears were to break this level today then the bullish outlook weakens considerably and a trip back down to 7130 and the 7100 recent low area looks probable.

The past week or so has been a bit choppy on the FTSE between this 7100 and 7200 level with neither one side or the other really getting a decent handle on it. The bulls have come the closest with Fridays rise so it will be an interesting week to see if they can build on that.

18 Comments

  1. Morning chaps…welcome to a new week……Well my plan on Friday was to leave a short over weekend but I wanted it above 7200…… Didn’t get it anyway I placed two shorts last thing Friday again…..a big un at 7190 and a smaller one at 7191.3…… Closed the small at 88.3 and the big one luckily at 83.8….. Nice start to week…Ive opened two new longs at 86.3 and 86.8 so time for a cup of tea…..good luck all…..

  2. Morning all
    I did a lot of noting down levels and charting on the dax, then promptly bought into the drop for absolutely no reason. I was saved by a trendline on the H4 chart which it appears caused a rapid rally and retracement of the whole drop. I got lucky.
    Small size rest of day, mental state obviously questionable.

    GL

  3. Morning All – hope everyone had a great week and not too tired from watching the Superbowl last night.

    Much Like Anstel I had planned to run a Short over the weekend but it didn’t go exactly to plan and I decided to cut it this morning. I think we may get a run up to the 50% Fib at 7224 but I doubt I’ll re-enter as I’m already holding several short positions.

    Plus I was asking myself the age old question, what Elliott Wave could the FTSE be on – 4/5 or A/B

        1. Hi Jack yes I’m still holding….its a bloodbath at the moment …. A sea of red….but it’ll be fine…keep the faith and put the kettle on :0)..

  5. Nick, it is very strange, do your arrows coincide with the time. It looks like the last arrow goes on 7th February. Or it was an arrow in your drawing? Did you mean all of this should happen today? Why am I asking? Will it be short today after this rise?

    2. The arrows are just visual so you can see that i was thinking rise to 7205, drop to 7175 then climb again. Ignore the times…. I’m not that good at predicting the future!!!

    1. Tell you what Jack…you certainly have a tricky market with the DAX buddy…ive not traded it for a while…..

      1. I tried shorts on it today, but was confused with the the fierce rise in the morning, nearly went long there, and so I missed the beginning of the short.
        To short 11604 at 11.20 was a tricky business for me pushing my stop to over 50 points and so I got slightly scared. But that would be a good idea. But when you think of stop loss that big it puts you off.
        I had profits today on shorts and even one cheeky long bounce but wish I did proper entries on time and held held held. I never manage with a holding bit. Dax is a tricky market to trade, you have to be very careful with EMA and trend lines otherwise it will carry you out of your comfort zone.
        Dax never forgives you, if it wants to be STUCK it will be STUCK and nothing you can do to move the price.

  7. Nice drop off the 7205 area down to 7170 but not really much of a performance from the bulls

    1. You really nailed it today Nick,it pretty much did exactly what you suggested….impressive stuff…..nice one.

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