20th March 2018 – FTSE 100 Trading signals
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That was quite the trending down day on the markets yesterday as weaker commodity prices, caution ahead of the Federal Reserve’s crucial meeting and a “tech wreck” on Wall Street sent global stocks sliding. Facebook was embroiled in a data row which saw $30bn wiped off its value. It filtered into the four main tech stocks – FANG in the US – Facebook, Amazon, Netflix and Google – which all tumbled and risk appetite pulled back ahead of what is expected to be the Fed’s first interest rate rise in 2018. It is widely expected that Powell will raise interest rates on Wednesday, the first of 4 this year.
The FTSE was hit yesterday as oil and mining shares fell on retreating metal prices, to reach a low of 7020. Further downside looks likely with the 7095 level resistance for today. Interestingly the charts did look messy yesterday and I mentioned that shorting rallies was probably a good play – didn’t expect such a drop though, as the major supports were broken on the FTSE and Dax longs., and we never got the rally early on either.
FTSE 100 Trading Signals, Forecast and Prediction
After yesterdays broad based sell off for most of the session we have seen a bit of a bounce in the FTSE as the S&P climbed off the 2700 level. However, that is hitting some resistance now at 2725/2730 so may well dip again as interest rate rise expectations tomorrow and general risk off prevail.
For the FTSE I am still thinking that shorting the rallies is the best play and we now have 2 hour chart resistance at 7195 which is worth shorting. If the bulls were to really fight back and get the price above this then there are a cluster of resistance levels around the 7125 area.
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