14th February 2017
FTSE 100 Support 7261 7252 7242 7219 7218
FTSE 100 Resistance 7280 7285 7291 7303 7308 7312 7322
Good morning. Well we had the bull Monday, will we get the bear Tuesday to complete the pattern? The US was certainly turbo charged yesterday with impressive gains in both the S&P and the Dow. The FTSE 100 climbed from the 7260 level but stopped just shy of the 7300 level, though bullish it was pretty slow – hovering around 7260 for most of the morning. Overnight has seen some downside from the 7290 area so we could well get the bull Monday, bear Tuesday pattern. 7291 is the top of the 20 day Bianca channel for today. As mentioned yesterday we are starting to look a little bit more toppy now, it was just that the bulls were not quite strong enough to get above 7300. We haven’t been as optimistically following the US up, but if that turns down then I am pretty sure we will follow it down. The dollar deepened losses against most major currencies after NSA Michael Flynn stepped down amid concerns over the White House national security adviser’s Russian contacts.
FTSE 100 Outlook and Prediction
I am going to go with a bear Tuesday plan for today so looking to short at the 7285 area initially for a run down to the support area at 7250. With any luck it might go lower to the 7220 area. I have resistance at 7280 and 7290 so have split the difference for the entry. If the bulls want to scupper my plan then they will be wanting to break yesterdays resistance just shy of the 7300 level, however, that then opens up the 7312 resistance area where we have a fib pivot and also the 10 day Bianca channel (7308). Tomorrow has a large 28 point divi so likely to see a rise for that, so today the bears could do with stepping up to the plate. We also have a daily RSI of 65 again, having dropped off 69 from yesterday.
It will be interesting to see if the bulls are able to move the price above 7313 as that opens up 7353 for the top of the 20 day Raff, and potentially higher too, though this was January’s high so will likely see some reaction. Looking at the US though, it does make you wonder how far its going to go in a straight line, I am sure there will be some bump or other soon that will knock it down a bit. At the moment, its being boosted by the tax cut rhetoric. They will need to deliver some substance to that soon.
So for today, lets see if the bears want to come out and play. The ASX 200 trended down all day, maybe we do the same as though we rose yesterday it was lacklustre.
Well there’s 7250,has it got any strength ?
anstel, I wouldn’t long from here, looks dodgy, but it may pull back I suppose for the moment.
I reckon it’s goin to be 7300 in 24 hrs especially with the big divi…..but I’m being cautious tday…keep size tight…….
The hard trade is usually the right trade……I like that saying :0)
You are right. It can do so. You never know.
Good morning. Can’t believe Nick was spot on with Pivot today. 🙂 And I can’t believe I even managed to make profits on long dax this morning. Recovering yesterday’s reckless long 11793 taken just before the close, I don’t know why, I think it was stress, managed to recover to -10 yesterday (nerves, could have held to 0)
I think the best indicator for declines on the FTSE is when tmfp turns up on the board :0)……… No sign of him so it must be long lol…:0)
How’s that for technical analysis? :0)
Might dip my toe in if we see 70 on the long side…..
Ok I’m happy ish…..in at 68.8 long ….
Time for a cup of tea……
Looks a late long to me.
You see, anstel, I am more looking on Dax so often transfer my opinions on FTSE a lot. I knew Dax won’t produce long atm, a familiar beast to me.
Just waited for some conformation….
When the Dax is quite steady though I always think it bodes well for the Ftse…..
Cable is dumping..
Wow, FTSE going. Dax is lagging as usual. Tbh Dax looks like a mess right now.
Nicks targets are 7313 then 53 for 20 day Raff…..I reckon it’s on for a try to 53
Are you looking on plan B?
That’s my feeling Jack yes it is……could do anything though as we know….
If you go off naked trading those four extended green candles on Ftse 10 min suggest latent strength to me…
Increased long on Ftse.
No plan A or B on Dax I suppose, just a mess.
1.8% yeah right!
We will have to see Nick won’t we ..time will tell…
What did you mean Nick? 1.8%? If you take 7252 as the low and add 1.8% you get 7382.53?….
Inflation report today, came out at 1.8%. I think thats bollocks as the cost of everything has crept up since Christmas. Especially the weekly shop.
Oh thanks Nick I wasn’t sure what you meant…cheers.. the whole thing is a load of b@llocks but we can only trade the system we have….I mean the Dow…lol….it was 18200 ish in November…..someone’s smiling somewhere…
Weighing the Ftse down this morning could have been news Donald Trumps security advisor Flynn had stepped down…
Oh sorry Nick,you mentioned about Michael Flynn in your introduction, I hadn’t read that bit…..
US monetary policy report and yellons speech in 3hrs.53
once again spot on call Nick.well done more power to you.
For what it’s worth,there’s a golden cross coming up on the five minute Ftse chart……they don’t always seem to move the market though….couple of years back though when I was trading the Dow and it was weak and turning bearish every time I saw a death cross it seemed to be worth about 100 pts on the Dow…worth watching for though and making a note of what happens…..