Support 7184 7175 7168 7135 7110 7036
Resistance 7202 7214 7240 7263 7301
Well it took all day but the FTSE 100 finally rose from the 7171 level where we had the long to test 7200 again off the back of the Fed minutes being released last night. The FTSE was pretty lacklustre really yesterday as the S&P had a decent performance, rising from 2260 to 2270. Federal Reserve officials focused on the impact of potential fiscal stimulus during their December policy meeting, with many starting to worry that the central bank might eventually be forced to quicken the pace of interest-rate increases to head off higher inflation.
FTSE 100 Outlook and Prediction
For today, the bulls will be keen to build on yesterday small gain and break the 7206 level that has been resistance this week. If they do, then we have the top of the 10 day bianca channel at 7216 as resistance, with the 20 day at 7263. Between them we have R3 at 7236 and the 10 day Raff at 7240. For today, I have gone for some initial bull to try and pop above the 7206 level, but looking at trying shorts at 7215 and 7236, albeit they are risky ones off the daily channels.
Interestingly, with yesterday being fairly flat for most of the day, and then just a small rise towards the end, the 2 hour chart has gone bearish now, with resistance at 7194, so whilst I am thinking we will get a rise to 7206+, I am also have expecting a drop down. Tricky one today to call, to be honest. Gold has put in a decent rise over this week, now testing the 1180 level, so we may well see some profit being taken from equity longs and moved into gold if that continues to rise.
Below the 7180 level we have 7175 and 7130 as the 2 bianca channels, with more major support at the 7110 level. There is still a change that we drop back to the 25ema not he daily at 7036 for a decent swing long entry area. The daily RSI is still at 81 (remaining overbought still).
So for today, cautiously bullish off the 7180/7175 level holds, otherwise change stance for a run down to 7110.
