FTSE 100 resistance 7285 | 7230 support | Rise and dip today

4th May 2017

Good morning. The 7220 level held well yesterday as that was our 2 hour support mentioned yesterday. Got the decline as expected but unfortunately from just below the 7250 level so our short order just missed – bit annoying! Below the 7220 then 7198 looked pretty inevitable, and probably lower. The bulls took a while to get going from that level though, and overnight have managed to bring the FTSE 100 up to 7255. That is despite a weaker Asia session again, and also a fairly bearish ASX200. So this rise could well just be algo’s going on a stop hunt.

A U.S. report Wednesday showed private payroll gains slowed in April, ahead of Friday’s key official employment report amid concern around the U.S. economy’s tepid start to the year. The next hurdle for investors to clear is Sunday’s French presidential election.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

For today I am thinking that we will build on the rise from 7220 and get a further rise to 7285 where we have a fairly key looking fib level. This is also just above R2 for today, which stands at 7277.

Looking at the daily chart there is a load of key resistance at 7357 so this is starting to look like a decent swing short area, though I don’t think we will see that level today.

US ADP news yesterday was fairly positive which bodes well for NFP tomorrow, coming in slightly above estimates.

Support wise, we have 7230/7220 again, then 7190 below that. The momentum is with the bulls at the moment though, so I am thinking that we will get an initial rise, to probably reach that 7285 level. If the bears were really to go for it then a break of the 7220 level will likely upset the bullish momentum.

That said the ASX200 (Australia) was fairly bearish today, and gold continued to fall, breaking below the key 1250 level yesterday. So, it will be key for the bulls to be quick out the blocks first thing.

30 Comments

  1. There has been a conclusive rejection of 80 on the hourly. So would expect down from here. Helped by us ofcourse. Still running my spx short. +8 to -2 what a movement yesterday. Enough to get some bullish momentum started and a nice way to offload for institutions

  2. Morning Icarus Nick and all…..well I’m trying to solve my PTSD so I shorted this morning at combined 64.5……. Out at 61 in the end for 3.5 whole points….that’s really good for me on a short :0)…..im now back to my old tricks and long at 57.6…..:0)

        1. And you buddy what goes up must come down…..i really didn’t like that short this morning….when I first started trading before I learnt it’s all BS I had the Ftse shorted at size and that’s when I first became aquainted with Mr Pump…. And hence my aversion to shorts but I’m goin to keep putting shorts on from time to time to get comfortable with them again…..

  4. Consumer credit increased, mortgage approvals reduced, govt unstable, brexit clouds looming. What more do we want to convince sellers

  5. You must be gutted now, anstel. I could not believe my eyes when I saw Dax right now. I just needed a good sleep after yesterday and missed the rally.
    No, I didn’t intend to stop trading, it just my friend found out about this job in what I do, and they don’t come often, so I could not say no. I don’t even know how much the salary is but it is a teaching job. I would regret later if I didn’t apply. I don’t really know, whatever happens.
    The main mistake I keep making in trading is not agreeing that I am wrong. I insist on chosen direction and refuse to flip the coin.
    Why Dax didn’t drop? Typical. I want to take long now but the pullback was really modest.

    1. No I’m fine thanks jack….Its just one of those things,that was yday ….tdays a new day and so far I’m up :0)…

  7. There were some good results from Shell and HSBC this morning which will have helped the early rise…

      1. Hi Senu…..look up Anton Kriel on you tube….10 secrets to success or something……”..respect money but be indifferent to it.”… You have to let go of fear …..its your R complex in your brain that regulates fight or flight….you have to control it or stop trading……..there’s a saying ” scared money never wins”. Try wider stops and smaller size to get used to the idea maybe? Good luck….

    2. look, this would taken my stop. I thought it will, so, early exit. everything bullish suddenly..

  11. Hello All, Hope you are doing good. Long on the dow from 916 still holding. Expecting 21100.

  14. Closed for 100.
    Keeping ftse and so open for tomorrow. Not convinced with the reversal today so we should revisit today’s lows, hopefully by 3pm tomorrow!

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