23rd November 2017
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The FTSE has found some support at the 7400 level overnight, and with the US closed today for Thanksgiving we may see a drift up towards the 7425 area this morning. Dropping off the 7450/60 resistance level shows that there are still bears around and the 2 hour chart has also now gone bearish, with resistance at 7412 this morning. The ball is firmly in the bulls court to start with today, to get an early rise. Can they?
The Budget was a fairly muted affair yesterday, most people wont be affected by many of the changes announced, save for a small increase in personal allowance. First time house buyers also got a good deal on stamp duty. Little carrot there for the youth vote. Meanwhile, the Office of Budget Responsibility said growth would be below two per cent for the next five years, the worst growth forecast since 1983.
FTSE Outlook and Prediction
With the drop off 7460 yesterday the 2 hour chart has gone bearish and is showing resistance at 7412, while the 30min chart is showing resistance at the 7422 area. With the US closed today we might well have a fairly flat day, with a bit more profit taking coming in, especially as the S&P hasn’t been able to hold above the 2600 level.
Data wise today, Germany details final GDP figures for the quarter and the UK issues initial GDP data, while preliminary PMIs are scheduled for France, Germany and the euro zone.
Support wise, we initially have 7383 where we have S1, with a fib level below this at 7370. There would also be the second test of the rising 2 hour trend line at 7392 if the bears break 7400 first thing, though its really only the first test of this line that we are interested in (the rise off 7370 on Tuesday).
Not too much to say really, but watching the 7412/7422 area closely as resistance. Above this then a retest of 7460 is possible, with 7490 of interest above this. If the bears were to break below 7370 today then a drop down to 7340 where we have the 200ema on the daily chart is viable.
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