US v Russia | FTSE 100 Resistance 7355 7375 | 7327 support

10th April 2017

Good morning. Well that was a rather interesting day on Friday, living up to its Freaky moniker. A poor NFP, the threat of tensions over Syria between the US and Russia ratcheting up, and the FTSE climbs from the 7290 level to close out the week at 7350. It was helped of course by cable falling towards 12350, but even so, was still a move that looked all a bit “fake”. Especially as gold spiked up to 1270. Interestingly, this 7350 area is looking like resistance to start the week, with 7375 above this for the top of the 2 Bianca channels.

FTSE 100 Outlook and Prediction

Will we get the pattern that has played out for most of this year and see a Bull Monday and bear Tuesday yet again? The price has held up well over the weekend around the 7355 level, despite the war rhetoric (can’t believe the media stoking after all), though it does feel a bit toppy here in the short term. There is a chance that it will drop off at the open from the 7355 level to test the pivot at 7327, and possibly lower. There is support below the pivot at 7295 for S1 and then 7278 for a fib level.

Looking at the ASX200 they had a pretty bullish Monday – I am thinking that we will probably be the same, with a break of the 7355 level to rise up towards the 7375 level.

Resistance wise, above 7355, we have the top of the 2 Bianca channels at the 7375 area, and also a fib level. The 2 hour chart is still bullish, with the coral trend line now turning green and showing support at the 7303 level.

That said, the daily Raff channels are both heading down currently, and both showing resistance at the 7412 level – so if we were to defy a bit of logic and rise up that far today, that area looks a decent level to go short.

Longer term support is still at the 7250 level and a break of this will get things quite bearish – possibly testing 7100.

Interesting times with political risk, taper talk from the FOMC, Rate hike talk from the Fed and the poor NFP. Never easy!