Another day and the FTSE pushed on to test the 7505 level this time before dropping back along with the US on news that the investigation into Donald Trump (the knives are definitely out for him aren't they!) is going to be widened to include business dealings with Russia. The price then failed to better 7500 for the remainder of the session despite the US bouncing back from the lows, and overnight has dipped a little. The Asia markets also took a breather after a steady rise this week, dropping back a little bit. Interestingly, we now have support at 7474 on the FTSE, with resistance at 7508 for the 10 day Bianca, and 7520 above that. Fairly narrow range with the immediate numbers, however wider out we have 7420 and 7580. The former is moving average support on the daily, while the latter is the latest 20 day Raff channel top.
It's Freaky Friday today, so I tend to do reduced stakes today, we also have option expiry so likely to see some spikiness at 10:10 till 10:20 as option contracts roll over. A spike up can be a good spot to short - might spike to the 7530 level though if it goes mad. Caution is needed!
Yesterday ECB President Mario Draghi signalled the bank would discuss language on bond purchases in the autumn. No decision has been made on timing or form of any tapering, Draghi said, adding that the Governing Council kept the timeline for discussions and tapering open.
FTSE 100 outlook and prediction
For today I am watching, as mentioned above, the 7510 area as initial resistance and am thinking that we may well get a decline down at some point over the next couple of sessions to test the 25ema on the daily at the 7425 area. The daily chart has gone bullish now with decent looking support here, and I am still not ruling out a test of the 7600 level at some point soon. The bulls failed to break that last time to test the 7650 resistance at the time, but it would set up a decent double top at that level. Not today though I don't think!
So, if we do rise up towards 7510 and then turn down from here, I am thinking that the 7474 and then 7450 area is a decent initial target with the 7420 area below that.
Should the bulls break 7510 then we have a decent fib level at 7530 as a possible short entry as well.
That all said, there is pivot support at 7477 also, and the bulls may well defend this area, at least initially. I haven't put it in the trade plan, but a speculative long here might be worth a go as well. Something for everyone today!