19th December 2017
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The FTSE 100 certainly got a reaction at the 7542 level yesterday at the fibonacci level we had as resistance with a decent drop down to the 7510 support area, before the bulls brought the price back up to close out pretty much at the double top area and on resistance. The US helped pull the market up again, as the S&P looked to be going for 2700 with a steady rise during their session. The bulls stalled at 2695 though, but still made fresh record highs. Its all about the tax bill in the US today, with the House voting today. It then goes to the Senate.
It’s looking like the FTSE bulls will break through the 7545 resistance area today to test the 7563 level (R1) and a session close above this is positive for the end of this year and into next. 8000 next year!?
FTSE Outlook and Prediction
For today I am expecting the bulls to push through yesterday’s resistance level at 7545 and test the R1 level at 7563. We do have a fib resistance level just above this at 7578 and R2 at 7583, so a break higher than the 7563 would likely see this area tested. A lot of the afternoon moves are going to be driven by the US again, and the tax bill which is up before the House today before heading to the Senate.
Support wise, I am watching the 7515 level which is 2 hour support, with more major daily support lower down at 7440.
To start with today it looks like the daily pivot area at 7526 will hold any early bearishness and a rise to 7563 this morning is on the cards. Its Santa Rally week still so the bias is still long, and there are few signs of buyers getting cold feet at the moment.
So, buy the dip for the moment but watching the 7563 resistance for today. Expecting a bit of a rise and dip.
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