Trump to address congress | FTSE 100 Resistance 7292 | Support 7242

28th February 2017

FTSE 100 Support 7264 7257 7249 7242 7227 7216 7210 7192 7172
FTSE 100 Resistance 7290 7291 7296 7312 7324 7342

Good morning. The bulls managed to find support at the 7240 level yesterday which worked well for our long, managing to get to an overnight high of 7280 before the FTSE 100 has dropped back to 7270. Thought the support would hold but thought it might be a bit of a slower rise than that, in anticipation of President Donald Trump’s speech to congress later today. Investors have remained wary as they await details of Trump’s economic plans and watch for signals on the timing for higher rates.

This afternoon data wise we also have US GDP (exp 2.1%), wholesale inventories and consumer confidence. Slightly weaker session on the ASX200 with a bear Tuesday playing out and a drop of 50 odd points so FTSE 100 might well think about following suit.

FTSE 100 Outlook and Prediction

For today most will be looking to Trumps speech later and clues on policy direction, the infrastructure plans, the tax cuts (though he has said no details on that till Obamacare is repealed so we will see). However, we have decent looking resistance at 7291 with a fib level and R1, and then the top of the 10 day Bianca at 7294. A short around here could be worth a go.

The 10 day trend is a bit more bearish now, and the FTSE has failed to retest that 7350 area even while the US has been pretty bullish (mainly due to the GBPUSD rate). Rumours of a second Scottish referendum yesterday sent cable down, though this time the FTSE didn’t rise in the morning as it did so. First time in a while that they haven’t been closely correlated.

Support wise, we have 7242 area again with S1, and 7249 for the bottom of the 20 day Bainca, so we are once again in a fairly tight range between decent support and decent resistance levels. One will break soon, and it may well be to the downside, however if the bulls can build on yesterdays rise and hold the 7264 pivot area then 7325 is not out of the question.

For today though I am watching 7291 as resistance and seeing what the reaction is there and if the bears appear, for a dip down (bear Tuesday after all!)