Trump tax announcement today | 7280 7330 FTSE 100 Resistance | 7250 support

26th April 2017

Good morning. The rally continued yesterday with the FTSE hovering around the 7280 resistance level. There was a chance that it might have pushed up towards 7330 but remained fairly flat as investors caught their breath after Monday’s extremely bullish day. That said, 7330 is still resistance! Geo-Political concerns have taken a bit of a back seat in the media, though US v NK tension is still simmering away. Chinese and U.S. stock markets are diverging in a way not seen since August 2008, with the former hitting a three-month low earlier this week.

The Nasdaq topped 6,000 for the first time on record while the Dow rose more than 200 points amid strong quarterly results from blue-chip firms Caterpillar Inc. and McDonald’s Corp. West Texas Intermediate futures snapped a six-session losing streak but couldn’t break above $50 per barrel, while safe haven assets like gold, Treasuries, and the Japanese yen moved lower.

We have a 6.1 dividend today on the FTSE and also President Donald Trump has said that he will be announcing tax cuts and reforms today, the main component being corporation tax rate reduced from 35% to 15%.

FTSE 100 Outlook and Prediction

FTSE 100 Prediction
FTSE 100 Prediction

I am thinking we might have another fairly flat day until the market sees what Trump is going to announce later with regards to the tax cuts. Markets have risen quite far quite fast and we are testing/nearing the top of various daily channels again, as well as making new record highs – something that usually doesn’t last indefinitely.

The FTSE 100 has resistance at 7290 initially, then the 7320/7330 level so I am thinking a short around this latter level is worth a go. Could even turn into a swing short level to target the gap at 7127.

Support wise, we have the 2 hour chart offering up 7247 and 7117. We also have the daily pivot today as 7273, so pretty close to where we are now, and a level that has held overnight.

30 Comments

  1. I’m looking to buy at 7260…short term trend still up..would think that US traders will push higher

  2. I had a good look at charts last night and my view is that the bear market is just starting on the ftse. I am looking at the 78.6% retrace levels, I.e 7330 or 7375 for signs of reversal. I think it will be 7330-7350 as that coincides with the daily capped trend line. This is the third hit on that trend line and if history repeats itself we are looking at sub 6000 levels over the rest of the year I guess. I will be looking to only short this market.

    On the Dow again we have completed the 78.6% retrace yesterday so we will see a flat day or a clean reversal from 21000. This should give some confidence to the bears.

  3. Stocks look stretched. Definitely scope for reversal here. Never good for bulls if you dont see an early morning push eg FTSE never threatened 7300 today so far. The GBP is waiting for next leg up daily chart shows classic bull flag. Dax yesterday posted a doji candle but today is trading within yesterdays range so a break of that later today will get traders on that side of the trade. Dojis define and limit risk so are very attractive to play. So plan here would be to wait for US open and play any breaks thereafter. Personally I am contemplating going long gold with stop 1258 as it may be formimg a higher low on daily but will check back closer to US open to consider that one. A break below 1260 will probably scupper that thought.

  6. I’m short Dow but thinking that this might be one of those days when jingoism Trumps (haha) common sense.

  7. Any tax cut good news is presumably already built-in and can only dissapoint like most of Trumps efforts to date.

  8. Afternoon Lads,well I’m of the opinion the Ftse will go back up……I’m holding a long position…..and waiting for some evidence….I will dump it though if it gets really bearish…..I personally think it’s just having a consolidation period good luck all…

      1. Oh hiya Jack how’s it goin? Yeah I got in again for the 4.30 push but I held it too long and I’m 10 underwater at moment,no worries I don’t think … double bottom 3 min Ftse and if it doesn’t behave I’ll take the divi :0)..in fact I might even hold this till tomorrow and take the divi anyway… See what happens…

        1. Oh, I didn’t know you continued holding. I thought you cashed out not lower than 7288. 7288 was the last support there so it would indicate for me the last price to close at. Oversitting is the thing I hate the most. I tell myself as long as the price is around that area I will close when I feel the worrying signs on indicators or in price action.
          I am all right, had a couple of profitable days, hope that’ll continue. 🙂

          1. Hi Jack,:0) glad your doin OK…No I did close out of my long as posted above but I’m in again it’s my third trade trading this range….sometimes when I see a strong rally Like that I try and have a couple of attempts at extracting some points,working on the theory that when it pulls back there is still some hidden strength and its waiting for an opportunity to have another push a little later on…….sometimes it works quite nicely ….but not always…good luck buddy ….

          3. Hi Jack well that didn’t quite go as expected :0) I dumped half when it broke the 200 on the 5 min and I’m holding the other half for the dividend…. See what tomorrow brings goodnight buddy :0)

  9. Hey all
    So Dax hasn’t managed to push up considering eur weakness, so perhaps and underlying offer.
    All v slow

          2. It’s buy the all time high…….:0) looks like I just answered my own question lol!!! ,got to laugh really :0) there seems to be a lot of pump and dump goin on….. See what happens tomorrow after Mr Pump has had a good rest :0)

  10. 12470 closed, I don’t know, wanted 12480 but honestly … tedious day. Had long 12468, then long 12450. Closed the remainder on 12470. The range is ridiculous. I was astonished to see yesterday’s Dow in the evening to compare my modest long gains on Dax (+30). Well, that’s me trading today.

    1. It did get to 12480 in the end, haha. But the way it tricked me before I didn’t want to risk. When I had my 12468 trade it went down so it shuffled all my cards for me and I wasn’t so sure to wait any longer when it came back to 12470. If it was 12450 all along I would have held like I did yesterday to 12476

  11. None of yesterdays lows got taken out yet . Its a great filter. Keeps you out of bad short plays.

  12. Look at the tax plan trump has. Do you know why the market is still – cos everyone is shocked. It’s literally a plan on a page!

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