FTSE 100 Resistance 7308 7338 | Support 7278 7263 | Dovish Fed March Rate Rise

23rd February 2017

FTSE 100 Support 7278 7264 7263 7245 7220
FTSE 100 Resistance 7282 7289 7294 7308 7338 7362 7384

Good morning. It was a bit of a shame that the FTSE 100 hit our resistance level and short order at 7310 not long before the end of the session, and with a large dividend meant that I couldn’t run it for as long as I wanted without incurring the divi hit. However, the divi hunters stopped buying at 7315 after bringing it up 30, and we managed a few points off the short before the bell. They certainly appear around 14:45/15:00 these days, rather than 16:15 like they used to. 7300 was resistance for most of the day, and then later on a dovish Fed brought the US indices down a bit as well. According to the ONS yesterday the UK economy grew in Q4 2016, as GDP rose from 0.6% to 0.7%. The service industry expanded by 0.2%.

The Fed said yesterday that it may have to raise rates “fairly soon” (i.e. March) if the US economy remains strong.

The ASX200 has again had a fairly flat session during Thursday, which may infer that we will do the same – hovering around 7300.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

7308 is still intact as resistance and is intact R1 for today, with 7338 above that. We dropped off from this 7310 area yesterday of course, though the bulls will be keen to close above here today as it opens up the possibility of a rise to 7360. The bears have not been particularly strong this week either and its been pretty flat really.

The 30min chart is bearish to start off with so we might well see a bit of a dip down to the Bianca channel supports at 7264 and 7278, and possibly S1 at 7263. The US and Asia has been a little bit more bearish, and as we didn’t follow them up we are more likely to follow them down. Looking at the ASX200 (Australia, also commodity heavy) it was fairly flat today with just a 20 point range, so we might be similar. Its almost like everyone is just sat waiting to see what happens at the moment, with this sideways chop. Its probably a little bit toppy looking at daily RSI’s – the FTSE is only at 60 though, while the Dax is at 75.

So, key today will be if the bulls can break 7308. If not then we could be on for a slide down towards 7225 or lower.

6 Comments

  1. So took the dividend yesterday as said. I didn’t go mad and set 100pp against it, but I couldn’t resist adding 20. With hindsight could have safely added 50, but there you go. I’m now all out at 7306 for 17 points profit. Was a rather large-ish position for me, and with the sideways grind it was just adding cost holding over the weekend, and would also have cost a fair bit if I were to get stopped out.

    Will re-evaluate and let the market form a direction before getting into the waist again.

  2. Afternoon chaps had busy day……got long at open and recovered my loss from Yday and have made two wining trades tday so far…….Might be absent for rest of day….good luck all……..Nice One cowboy…..:0)

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