Bull Monday?! Shares in Asia rose during Monday, as did US futures, and the FTSE 100 futures are also off their 7291 low seen since Fridays close. The S&P/ASX 200 had a decent up trending day also, as tensions over North Korea eased a bit and news was forthcoming that despite the rhetoric the US and North Korea have been engaged in diplomatic discussions for a while now, despite the public war of words.
I am still watching the 7250 area as support, as 7241 is the 38.2% fib level from the 7050 to 7550 move we have recently had. Upside remains around 7600+
FTSE 100 Outlook and Prediction
The vibe feels a little bit calmer over the Asia crisis so we may well get some tentative buying today and mimic the Asian and Australian markets. If we get an initial dip back down to test the out of hours low at 7291 then this area looks good for a long entry, though as mentioned above I am watching 7241 for a possible swing long area, though I would want a fairly wide stop on it, below the 7180 support area.
We have the bottom of the 20 day Raff at 7290 today, though a key fib level after Fridays move is slightly higher at 7302, so I am expecting a bit of support in this area. If this breaks though then I expect 7241 in fairly short order, and things then start to look quite dicey with 7213 (S3) and 7180 on the cards.
Resistance wise, then the first one is 7380 which was previous support now turned into resistance. We also have R2 here for today. Higher up, with the daily chart now looking bearish the 25ema is at 7418 so worth watching this area, while the 2 hour coral line is showing resistance at 7432. The bulls will be keen to break above 7400 and make it stick as above those resistance levels then 7480 is a viable target.
