FTSE Trading Prediction | Support 7062, 7059, 7051, 7035, 7020 Resistance 7087, 7127, 7145, 7160

Good morning. What an interesting open that was yesterday with a pre open move designed to take out as many stops as possible before dropping down to the support area. Quite often if you get a sharp move like that 07:55-07:59:59 it is worth always doing the opposite as its usually a stop hunt. Ended up dropping from 7127 all the way down to the entry level for our long at 7073, which managed to get a few bull points. That level held pretty well for most of the session, before the lower support at 7055 was tested and held. So a bit of bull power around still for the moment. It feels like its make or break today for the bulls, as we are testing the bottom of several daily channels – both Raffs on the Dax, 10 day Raff on FTSE at 7020 and the Bianca 10 day at 7059.

US & Asia Overnight from Bloomberg
Most Asian stocks fell after the regional benchmark index closed Thursday at a seven-year high. Japanese shares slid to pare a third weekly advance.

Two shares dropped for each that rose on the dollar-denominated MSCI Asia Pacific Index, which was little changed at 154.44 as of 9:05 a.m. in Tokyo. The measure closed at its highest level since January 2008 on Thursday, and is poised to end the week 1.4 percent higher.

Japan’s Topix index lost 0.4 percent and Australia’s S&P/ASX 200 Index slid 0.1 percent. New Zealand’s NZX 50 Index and South Korea’s Kospi index were little changed.

E-mini futures on the Standard & Poor’s 500 Index were little changed. The underlying gauge slipped 0.1 percent on Thursday in New York as semiconductors declined on SanDisk Corp. results to offset a rally in Netflix Inc.

Investors are weighing economic reports for clues on the timing of the Federal Reserve’s first rate increase since 2006. Fed Chair Janet Yellen has said that while rates will probably rise this year, any decision depends on economic data. Housing starts rose less than forecast in March, while jobless claims increased in the week ended April 11. [Ref]

FTSE Outlook

FTSE 100 Prediction
FTSE 100 Prediction

Its a Friday and also option expiry today so expect a bit of chop at 10:10ish as various contracts roll over. todays pivot is initial resistance for the bulls at 7087 (IG), 7079 (live charts), whilst the 30minute chart has a fairly decent looking rising channel currently in play. With the bottom of the 10 day Bianca a 7059, this area might hold for an initial test this morning. I have plotted in some weak bull today, as I think the bulls will be keen to defend this area, but if 7059 break then the next support levels to look for are 7051 (yesterdays low), 7035 and 7026. Resistance as mentioned is initially at the pivot 7087, with 7127, 7145 and 7160 above that. I don’t think today will be bullish enough to reach those upper levels, but longs off the support around 7050 could be worth a go.

24 Comments

  1. WTF happened there??? I innocently shorted the options spike and ended up with 80+ points in my lap….not complaining but why?

          1. I took a stupid long against the tide but ended up in profits like 40 points or something. It did recovered. Then I took short that was great too. Now feeling a bit annoyed, it didn’t go down any more. Also I was annoyed with the mistake I made, when I was closing one of my shorts I didn’t noticed I still had 2 in the stake, but I forgot I closed 1 before that with profit and didn’t change the remaining opened ticket. So I closed 2 and see wtf this little losing trade is doing here? (it automatically opened a long trade for 1 stake) Had to close just -7. Recovered later.

  4. Just the start of the correction. The warning sign was yesterday’s reversal. Traders hung on for Options expiry and then boom off to the sales they go. I posted this on the 8th April below –

    “Zigzagger says:
    April 8, 2015 at 11:15 am
    … I do fancy a (pre-election) short if we get to a high around 18th April. Might be around 7100-7125 by then. There’s a nice daily gap below at 6850 that’s waiting to be hit sometime …”

    oh it’s also a full moon tomorrow where you can (but not always) get a high +/- 3 days. If this corrects by the same amount as it did in March then we’re heading for 6730s

  8. Expected a short 17992 from 12.30-12.57 and was annoyed when it decided to break the top. I added to it as planned higher it was 18022 and recovered on the fall to 17974. I hate, this price goes so slow, I have no patience. I just don’t know. Now I see retrace to the fall happened and it’s trying short again to possibly 17950. Just hard when you are actually sitting with money in a trade. It feels ages, ages and ages. But when you come out the time goes faster.
    Indicators screaming yes yes yes, but at 12.54 it didn’t happen.

    1. I just can’t take all falls and risers. Calm down (to myself), 17951 shows S3. It’s not worth shorting at this level anymore. If it was from the pivot or like earlier 18081.

  10. The market is very ordered at the moment. I just haven’t taken advantage off it that much as I’m always looking short side but this gradual long rise may just carry on after this pull back.

    1. That was savage — down to Greek machinations so far as I can gather. But do not despair (re longs), there is the prospect of the Heavenly Twins being returned. 😀

  11. I really don’t see what the problem is — Greece’s indebtedness crisis could easily be solved by redirecting appropriately the current output of the ECB printing presses for a day or two. 😀

  12. The ‘logic’ on CNBC is the introduction of shorting on the Chinese exchange. I’ve gone long on Dax (11,670) and Dow (17,820) but only small positions. Remember the margins on IG rise from tomorrow to 0.5% of your position.

  13. Closed my Dow long to see if there’s a better entry around 17550 next week. Small Dax long I’m sticking with

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