FTSE 100 Support 7170 still | Resistance 7225 7250 | Trump rally to continue?

8th February 2017

FTSE 100 Support 7172 7160 7147 7122 7101 7098
FTSE 100 Resistance 7187 7195 7196 7212 7216 7226 7238

Good morning. Decent rise on the FTSE 100 yesterday and then a fall back to where it started, all mostly driven by the GBPUSD/Cable rate which was -100 at one point before climbing back to +50. The pound turned positive in late trade after Bank of England policymaker Kristin Forbes hinted at a UK rate hike. The bulls managed to hold the 7165 low for a rise to 7225, though the top of the 10 day Raff here stopped them. If they had managed to break 7225 then the 7250 looked likely but alas not. For the moment the support area is still intact at 7170 and the resistance at 7225.

The bulls will need to come out fighting today if we are to revisit that area, or possibly rise to 7250. We are still in a buy the dip sort of mentality on stocks, most prevalent in the US as investors are worried about missing out on a continuation of the Trump rally.

PM Theresa May last night comfortably defeated a Brexit rebellion in the Commons as MPs rejected Labour plans to give Parliament a “meaningful” vote on the terms of a final deal.

In the absence of any particularly bearish news I see that they have brought the Greek debt crisis back to the forefront again too. Must be some bears being squeezed!

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

The bulls will need to be quick out the blocks this morning, same as yesterday really, to defend this 7160/7170 support area and try and break through the 7225 resistance level today. If they don’t and the bears take us below 7160 then we look likely to be on a path to retest the 7100 level and probably lower.

Traders have certainly got it all to contend with at the moment, trying to make sense of Brexit, sterlings movements, Trump’s policies, now Greece, and how well the UK economy is actually doing. The US is remaining pretty upbeat with the Dow holding above 20k, and the SP hovering around 2300.

These are the 2 main levels to watch today really, 7165 and 7225 with a break of either likely to lead to a continuation. I think though that the bulls might have the upper hand and we get a rise to test the top of the 10 day Bianca at 7226 again, and possibly the 10 day Raff again at 7235 today. Overnight the support area has held, and cable has dropped back a bit to hover around the 12500 level. Again, I think most FTSE 100 moves will be currency driven, and the recent high on cable at 12700 remains intact.

Initially there is resistance on the 30min chart at the daily pivot at 7187 as well as a red coral indicator, so we may well get a small pull back initially towards the 200ema at 7172. There is also resistance on the 2 hour chart at 7195 to start with, though the bears seem to be ignoring any 2 hour resistance levels over the past few sessions to short from – will they today?

There is a 1.7 dividend today on the FTSE 100.

62 Comments

  2. FTSE chart looks slightly more bearish than Dax, Dow at the moment. I didn’t take any trade atm waiting for possible retest of the pivot 11546 or that area anyway.

    1. Yes the Dax looked quite composed with itself this morning holding around 40 give or take..it’s always a good sign in my eyes when the Dax is happy….

          3. anstel, the trend gone on holidays as it looks. I am not attempting any more longs unless 47 dax holds. It’s kind of around 68%. Maybe after US then.

    1. When it falls brutally before 57, messes up EMA and it expects me to buy it? They should think twice.

    2. I had a huge expectations for 11600, in vain. Now I know that this expectation may become a reality later in the day.

    2. Pre Open Dow looks interested…..so does Ftse after its pullback….if you get a push up on Dax Jack try and hold it for 40 or 50….

      1. I think your nerves are your problem Jack…..you have to respect money but be indifferent towards it a quote from Mr Kriel….

    1. Fair enough, anstel, it all looks rosy now but I have a resistance 11523 now on Dax so I took the profits while I had them.

    2. That 500 I dumped in a loss but it was evened up based on profits from 490. Then I had another long 493 which got me to 516.

          2. And cables not even dropping! Add a drop from cable into the mix and Ftse could blast through 200…

  9. I noticed some developments while I was away for school run. Dax got to 540 after all, but after the retrace. FTSE amazed me the most.

    2. Oh well, cannot take them all. I cannot trade all day, it’s over-trading for me. It’s the shame the long didn’t develop in the morning: I didn’t expect this drop.

        1. I trade Full time Jack…..and I’m totally committed to nailing it… For me you either trade or you don’t….you can’t learn this half heartedly……it’s too difficult and believe me I’ve had some massive knockbacks but that’s just when I just discovered another way that didn’t work….Don’t ever give up and keep learning and pushing…..only losers quit….and your not a loser,your still here….

          1. anstel, I am trying to do exactly what you do. However I still have a part time self employed job with less volume now in the evening (I reduced hours gradually). So I trade from 8 to 3 and try to make the best of it. I don’t like giving up either 🙂

        2. Hi Jack…..just closed that Dax long for 43.9 points……didn’t want to run it overnight….goodnight buddy…

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