27th March 2017
Good morning I hope you had a good weekend. The big news on Friday was that Donald Trump’s healthcare bill was pulled before it looked like it was going to fail to pass. This in turn has led to the bears taking control of the indices as it would indicate that Trump will struggle to do a lot of the things he said he would do, which were things that fuelled the “Trump Rally”. With the FTSE having topped out at the 7445 level, its now back below 7300 as I write this, and we might, for the first time in a while struggle to deliver the bull Monday, bear Tuesday pattern this week.
FTSE 100 Outlook and Prediction
We have a gap from Friday’s close at the 7333 level so might see an early charge from the bulls towards this level. There are some pretty strong daily supports around the 7280 area where we are as I am writing this so an early morning initial rise could well be on the cards. The ASX200 (Australia) followed a similar pattern. This afternoon we might see some more weakness as the US digests properly the news of the bill being pulled and how likely Trump is going to get his various pledges delivered. Repealing Obamacare had been a fairly key one and this first test hasn’t gone too well.
So, if 7270-80 is decent support, then a breach of this could get things quite bearish for the end of March. We do have a fib level at 7275 and well as S3 at 7268, so I will only get more bearish if we dip below this.
On the flip side, if the bulls do got for a bull Monday charge, then a break of 7346 will keep the uptrend in tact and those higher levels culminating in 7520 are still in play.
For today therefore I am watching the 7275 level for support, and then 7343 for resistance. I am also expecting possible resistance level to play out at 7305 which might temper any early rise.
Good morning, Nick. I wonder what your long on Friday resulted in?
+9 in the end off that one Jack
It’s all money management. Thanks for sharing it.
At last we have some action and I will be looking for a sustained bounce off the 7250 level which is also a classic bollinger band buy level, my favourite area to go long. Staying out today but if we get a good finish will be looking to buy maybe tomorrow. For today though its still a sellers market until proven otherwise. Gold is in a sweet spot…a hedge against inflation and interest rates will be slower to rise than consensus currently indicates. Long.
Hi all!
Starting to get a picture in my head of potential action in various sessions – asia, london, US…
Everyone needs their opportunity to sell (today) their positions in each session.. once they’ve done that, its a drift back / consolidation until the next session draws close, then boom, back to the original requirement to sell (dollars today)…
Its a theory, but I’ll be watching out for the pattern in future…
Hope you’re all killing it!
and then the squeeze. lovely. textbook (not sure which!)
Bit of a bounce would be nice about now I reckon :0)
This double bottom on the 15 min has nearly got three butt cheeks now :0)…. Well you have to have a laugh don’t you :0)
A patient trader…..usually falls asleep :0)
Hope you made some decent pips today guys!
I don’t understand, somebody was saying it will drop today after US open. It’s all lie. What’s the point saying that. I would have gone long instead.
Maybe tomorrow. I was out with that short anyway, lost today’s profits and a bit on top. Sad. Struggling lately to get into positive. Emotionally struggling after my account. So keeping it low at the moment.
I am out now to take a gasp of air. Bye.
Hi Jack,just thought I’d comment,I don’t take any notice of what people say,I consider all opinions but ultimately if I think differently it’s my account and I will trade my own ideas….I make mistakes,yes we all do,but at least it’s my mistakes…I think there are a lot of people who post stuff but actually are so risk averse that they don’t get positions on…trade your own ideas and not others opinions,it’s bad enough losing,but when you had the right idea but got swayed by the opinion of others ….. who’s experience is unknown …it’s really annoying..good luck mate,,,keep small till your confidence and success rate returns…
Anstel, thanks for words of wisdom. I do get hooked by other people’s opinions and got completely frustrated today. Missed morning opportunity for short and tried to hijack short in the afternoon. Silly of me so got upset. I need to trust myself more I know. I didn’t see short but I still went short on top but it didn’t fall. Good night.
To be fair, he/she did qualify it was just an evolving theory!