Rise to 7400 possibly 7450 | New month money | 7350 support | Trading signals

2nd October 2017
We ended September pretty strongly, with that bullish Friday as expected. Didn’t even dip down to 7320 though, just straight out the blocks! Overnight we have popped above the 7400 level but dropped back to close the gap, but bodes well for yet another bull Monday. We are just testing the top of the Bianca channels at the 7380 levels if the bulls can break above this then we will likely see the 7450 area. There is support today at 7350. Things are kicking off in Spain at the moment too which is a bit unsettling for the EU as the Catalonian referendum descends into violence.The preliminary results pave the way for the region’s leader to declare independence in the coming days.

All that said, I think the FTSE 100 will be bullish today. Buy the dip! Again……


FTSE 100 Outlook and Prediction

FTSE 100 Prediction Support Resistance Trading Signals
FTSE 100 Prediction Support Resistance Trading Signals

For today I am thinking that buying the dip (if we get one today!) is the best play, ideally around the 7350 level as we have decent support here. If the bears break below this then the fib level support at 7305 is likely to be tested and the bulls are likely to defend this to build on the strength at the end of the September.

It’s the start of the new month trading so we usually get a kick up initially as the new month money flows in. There is initial fib resistance at 7401 so we might stall a bit there, and we have the overnight high at 7405 as well. Above this then the Raff channels are both at 7415 though I am also expecting the bulls to be able to push on towards 7450 if they get some decent momentum. The S&P 500 has broken above the 2515 resistance level now and holding above 2500 whilst looking strong still, so we are more than likely to see further upside in the US as well.

The 2 hour chart looks positive for today, and is the one showing the 7350 support. I expect this to hold.

So, watching 7350 for support, 7415 and 7440 for resistance.

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29 Comments

  3. Think 7415 area could be it for today. Due some consolidation looking at the hourly, so 7375-7415 looks like the range. Trend is up though now and would expect to see 7440 this week

    1. Trend is down on weekly and daily. This is a currently a correction that I am playing to 7425 – 7450 area. If the price action shoots through those levels obviously I will hold. But a reversal looks high probability here, and ready to close on a 4 hr negative candle.

  4. GBP USD continues to fall. I was using FTSE as proxy for this trade as much as the index itself so been a bit disappointing..

  5. Commodities look weak. Im bailing here for an acceptable small profit of about 1%.
    Might be a bit left in it when US opens but not encouraged, oil dropping now as well so back to cash and wait.

    1. Your taking some heat on that Dow short Icarus…when it was 21700 I mentioned a pump up 1200 pts on Dow is nothing….good luck bud…it’s not broken till its broken…

  9. Looks impulsive to me now for the first time since June.. pullbacks are shallow and being bought, plus its staying overbought. Not sure where it’s heading but suspecting that 7440 pivot won’t be the high of this move. 7480-90 and 7540-50 then 7600 are the areas of interest. Anything is possible now including new highs as the last two days are starting to look like a new uptrend

      1. Mind you Mcg…..when it looks like it’s unstopable it sometimes throws a curved ball and retraces out of the blue…caution needed I think…

        1. Yeah.. but the price action looks more like May than anything we’ve seen between June and September. It’s basically claimed 7320, 7380 and probably 7440 without pulling back. New quarter optimism maybe but need to wait for it to turn. The markets spend 85% of the time going nowhere and the other 15% they trend and move a lot.. feels like we’re seeing that kind of move now

  10. Closed one long Dow at 25500, will let the others run until tonight.

    Best Monday I’ve had for a while .

    1. Beware of overconfidence now Morko…..best just walk away and wait for a good probability trade to present itself…

  11. Ok good call brother Anstel, all closed. May well dip 19:30ish so might buy again.

    It’s taking all my will power not to
    Add a short now, it hasnt come this high to fall now though!

  14. I have added Dow long with tight stop, did well so feel I can afford a risky one ( small stake) …I think we will see 12590 to 12620?

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