Getting top heavy at 7420 | Interest rate and Inflation report due | 7330 support

11th May 2017

Wasn’t much of a dip on the FTSE 100 yesterday before the rise started, only getting down to the pivot at 7330 and then managing to reach 7399 just before the bell as divi hunters, a rising oil price and general bullish optimism pushed it higher. 7399 of course means that those with bets on the round number via One Touch contracts and probably short orders at that level just missed out! The bears have certainly taken a back seat this week, though as always happens they will reappear soon. Just need a newspaper headline saying “is now the time to buy shares” for the best bear signal of them all. Gold has stabilised at after six days of falls, and if fact has risen a bit overnight. Today we have the BoE releasing interest rate decision and quarterly inflation report at midday.

FTSE 100 Outlook and Prediction

Daily FTSE 100 Trend Channels
Daily FTSE 100 Trend Channels

For today I am thinking that we will have an initial rise, then a dip down on some profit taking. We also have the BoE releasing their data at midday, with the quarterly inflation report and interest rate decision. I expect interest rates will remain at 0.25% and asset purchase at 435bn…

Resistance wise, we have a fib level and yesterdays high at 7400 to start with, then 7419 above that. This latter level looks like it might be worth a go short though as with yesterdays short, if it doesn’t react quickly best bet is to cut and run as it might well carry on rising.

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24 Comments

  1. Waiting for a drop….looking lacklustre at the minute.

    A Friday free fall Would be nice to finish my first week back on the trades.

    GL all

    Ps any thoughts about Gbp/USD. Thinking it will rise but lessons learnt say not to touch . Any thoughts.

    1. Morning Icarus..hope you not doin too badly….I don’t use technical analysis that much really but in my opinion this is goin above 7400… Probably 7410….. Be careful if you are at size buddy and best of luck……I’m done for the day going off to walk the dog and get some sunshine….I may have a look later and see where it finds some equilibrium….GL all

      1. Doing okay buddy. Helped by the spx short. A decent size drop on Dow and spx so should help things on ftse.

  3. All a bit dull as long as you are on the right side. FTSE trend remains up. It can be shorted with a stop above 7400 if you like throwing money away. Gold is trying to turn but not yet a buy. Bit of strength there will get me in.

  5. Feel like I’ve been looking at 7380 all day!

    I’m holding off any trades until more confirmation of movement, a short from 7410-20 would be ideal but I shan’t chase it.

    I’ve actually been trading the DOW a bit more lately, it looks quite weak. I’m finding the FTSE a tough one these past 3 weeks.

    1. Out at 7378. Added to my gold longs instead. I will be back for that 6349 soon though. 🙂

        1. It’s all happening aye Si!

          Makes me laugh, Dow drops 112 pts and FTSE doesn’t bat an eyelid.

  7. Selling into the rallies and building those short positions Friday and earlier in the week playing out nicely. FTSE not quite playing ball though, but with so many people short it’s not going to drop straight away?

    Rallies feel week so it suggests no new buyers coming into the market simply bears closing, get them out the way and we’ll carry on rolling over and get a lot lower?

    1. I wouldn’t be so sure if I were you…..ftse’s got a nice headline grabbing target at 7500 to reach out for IMO…

      1. Hoping it will get as exhausted as i am watching it!
        +48 points on S&P so far this week, currently long of 3.

  8. FTSE very strong last couple of days, seems buyers cant buy it fast enough…
    Looks like its following Oil futures and not the £/$ cable fx… The trend closed flat today…

  10. This all seems familiar, looking like FTSE is trying to knockout shorts.

    Some funny going on occurring..I now fully expect this to have any push up.

    Remember after brexit and staggered it got to 6000, now look!!!could easily hit 8000+

Comments are closed.