FTSE Trading Help | Support 7011, 7005, 6995, 6914, 6902 Resistance 7032, 7050, 7112, 7128, 7173

Good morning. I hope you had a good long weekend (those in the UK anyway! Ended up being a pretty decent rise from the bottom of the Bianca channels on Friday around the 6920 area, hitting a high yesterday (out of hours) of 7060. Now the Royal baby (congratulations Kate and Wills) has been born and named, the media will be on full focus for the election on 7th May and the result. Still appears to be a very close one to call. A Labour win will still see markets drop by the look of it, a Conservative majority would be very good for markets. After a bank holiday Monday the first morning can be a bit choppy, especially as we rose so far on Friday. I wouldn’t be surprised to see an initial dip to support around 7005 though.

US & Asia Overnight from Bloomberg
Asian stocks outside of Japan rose for a second day following a rally in U.S. equities and as investors await an interest-rate decision by Australia’s central bank.

Australia & New Zealand Banking Group Ltd. jumped 3.8 percent in Sydney after the lender posted a record first-half cash profit. Fortescue Metals Group Ltd. rose 3.1 percent in Sydney after Vale SA signaled that it may be willing to moderate supply growth amid a glut in iron ore. Alibaba Pictures Group Ltd. declined 7.3 percent in Hong Kong after actress Zhao Wei and her husband Huang Youlong sold shares in the film-making unit of China’s biggest Internet company

The MSCI Asia Pacific excluding Japan Index rose 0.2 percent to 515.88 as of 9:32 a.m. in Hong Kong. Markets in Japan, South Korea and Thailand are closed Tuesday for holidays. The Standard & Poor’s 500 Index neared a record in New York on Monday as earnings from Comcast Corp. and Berkshire Hathaway Inc. beat estimates and data showed strength in the U.S. economy. E-mini futures on the S&P 500 were little changed.

“As U.S. growth appears to be coming back, chances are we will see rate increases in the second half of this year,” Tony Farnham, a strategist at Paterson Securities Ltd. in Sydney, said by phone. “There’s still plenty of liquidity sloshing around and that’s good for the financial markets. We’ve got quantitative easing happening in Europe and Japan, and China providing additional monetary stimulus.”

Factory Orders
A report on Monday showed U.S. factory orders rose in March by the most since July, fueling speculation a winter slowdown in the economy may have been short lived. Separately, an unexpected drop in a private gauge of Chinese manufacturing on Monday reinvigorated speculation that officials in Asia’s largest economy will boost stimulus to shore up growth.

Australia’s S&P/ASX 200 Index added 1 percent. Most economists surveyed by Bloomberg predict the Reserve Bank of Australia will cut its cash rate target to a record 2 percent from 2.25 percent Tuesday. The market has been pricing in a better than 75 percent chance that borrowing costs will be reduced.

China’s Shanghai Composite Index slipped 0.4 percent, while Hong Kong’s Hang Seng Index added 0.5 percent. New Zealand’s NZX 50 Index advanced 0.3 percent and Singapore’s Straits Times Index dropped 0.2 percent. Taiwan’s Taiex index fell 0.3 percent. [Ref]

FTSE Outlook

FTSE 100 Prediction and trading help
FTSE 100 Prediction and trading help

Having risen quite strongly from the bottom of the Bianca channels at around 6920 on Friday, we tested the top of the 10 day at 7050 out of hours yesterday and as such may see an initial dip today. There is support at 7011 initially where we have the 25ema on the daily, and then 7005 below that – now we are back above 7000 the bulls will be quite keen to remain so, however, the resistance levels and supports are getting closer so a breakout one way or the other will occur soon. The Raff channels are pointing down at the moment, after last weeks weakness, and with the pivot at 7032 there is more bias to the downside initially this week, I feel. An initial short from the 30 minute chart at 7035 (where we have the 25ema) to target 7005 looks viable, and possibly Fridays close level of 6985. If the lower support around 6995 holds then we could be on for a rise to 7050/7100, otherwise a break of that will likely see a decline to 6900ish where we once again have the bottom of the Bianca channels. 7050 also marks the top of the 30minute PRT channel. The S&P has regained a lot of ground from its recent lows and if that continues then 2140 still looks a target for the bulls, but also a level hat could turn for a larger decline. Worth a short here!

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27 Comments

  1. Hi Nick had enough of IG trading platform always doing maintenance on it and still nothing improves. Do you recommend any other trading platforms i can use and perhaps earn ourselfs a welcome bonus?

    cheers

      1. Hi Rog, oh thats a shame. I use IG and don’t have any real issues with it. I use Intertrader as my back up system. If you click the ad under “recommended platform” on the right of this page then you and I both get a kick back from them. Thanks

          1. Thats odd, works for me. Try the banner at the top of the page when its on the inter trader one

      2. Nice dip and rise from 7005. I sis think we might see 6995 though and had an order there, doh!

  2. Well I’ve been playing this game for a good few years now and I think I can safely say that rally from the friday official close ~6980 upto 7060!! over the weekend was one of the most ridiculous things I have ever seen.

  3. True tmpf, that rally after close on Friday really scared the shit out of me!! Well am back in good money, really want this 6900 to be broken down. 😀

  4. In at 7050, 10 point stop. Still holding at 6930. This maybe the bottom, but with the election looming im really unsure. Pulled the stop in to 6920.

      1. To be honest, i haven’t looked at the S&P for about 3 years. No idea what’s going on.

  5. Is anyone else long Dax? Nearly 10% off from its high. I sold a long this morning about 40 points shy of the top so chuffed but jumped back in too early so now 50 points in the red which given it’s the Dax may be back on profit as I sprite this! It’s more volatile than the Dow which has been relatively tame for a while…

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