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Can the bulls defend 7000 to get 7200 soon

By FTSEDayTrader Limited (Nick Hilsden)Stock MarketsOct 27, 2022 07:21
uk.investing.com/analysis/can-the-bulls-defend-7000-to-get-7200-soon-200543313
Can the bulls defend 7000 to get 7200 soon
By FTSEDayTrader Limited (Nick Hilsden)   |  Oct 27, 2022 07:21
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The FTSE snuck a bit lower than the 6969 support level but soon bounced back and managed to push past the 7042 resistance level to set a session high at 7060 before pulling back. Holding above 7000 is good news for the bulls and the rise towards 7200 remains viable, with the inevitable stumbles along the way. 

The seasonality pattern continues to play out with the rise starting mid October and if that continues then we should see more strength towards year end. 2023 may be a different story though....

Initially I am thinking that we will see a rise towards the R1 and key fib level at the 7080 area, and just above yesterdays high, with a possible stumble then as we see the bears have another go off this key resistance level. Above 7080 then 7120 is R2 and could be seen later, if the USA plays ball and the S&P were to push past the 3880 level which is the key resistance for that today. 

Above 7120 then ultimately they will be aiming for 7200 as mentioned - this is fairly key and a close above this will be quite bullish. 

For the bears they will need to break below the daily pivot at 7018, as we also have the green 30m coral here to lend support. 

A break of that will likely see the 6995 where we have the 200ema on the 30m, then 6975 which is S1 and the key fib. Its possible that we drop down to that but if we bounce there then that's a higher low and again sets up some bullishness ahead of the weekend.

Below that then 6917 is S2 and that would really scupper the bulls as the 7000 levels slips further away again. I don't think we will be heading there though as the 2h chart remains bullish, and the Dax and now the S&P daily charts are bullish. 

The 25ema on the S&P is at 3760 and the bullish cross over on the daily MA's have locked in now so should we drop down to test that area we should see a hold of that. The Dax continues to pull away from its daily MA support after the bullish cross over at the 12715 level now. 

If the FTSE daily chart follows suit soon, then the 7000 area should lock in as MA support and bodes well for a year end rise towards 7500, maybe even nearer 8000! 

So, once again it looks like a push higher for todays session - the only slight spanner in the works may be the ECB rate decision, with the rise to 2% forecasted. That's out at 13:15, and then the press conference at 13:45 - traders will be looking for guidance on a slowing of the aggressive rate rises. 

Good luck today. 

Can the bulls defend 7000 to get 7200 soon
 

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Can the bulls defend 7000 to get 7200 soon

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