Ended up being a bit hasty closing those shorts on the FTSE 100 and S&P on Friday as we had a decent dip down in the end for most of the session. General end of week weakness saw the FTSE fail to hold onto the 7500 level, but also at the same time, a drop back creates a decent spring board for a push up this week towards 7550 or slightly more. Will we have bull Monday yet again today? It was a shame that it bounced just above the 7421 long order (low was 7432) but that still looks decent support for today too.
The 2 hour chart is showing some resistance at the 7475 level, and the 30min chart has resistance slightly below that at 7460, so the bulls will be keen to break these areas early on today. Of course, we are still in earnings season and there are a lot out this week, including big hitters such as Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB), GSK (LON:GSK), Shell (LON:RDSa) etc. These results will move the markets around this week so bear that in mind.
FTSE 100 outlook and prediction
For today I am fancying "buying the dip" and am looking at support at 7420, however (there is always a however, isn't there!) I am also looking at resistance at 7469, 7476, 7515 and 7570. This week it will all be earnings driven, but I am am expecting to see a rise this week towards the 7600 level. Probably later in the week. The momentum is still bullish for the moment, and as long at the 7420 to 7410 support area holds then we should see a push up.
Support-wise, if the bears were to get the FTSE 100 below the 10 day Raff, which is at 7398 then we could well be on for a trip down to 7350 and maybe a bit below to test the 20 day Raff at 7320, however, 7420 still looks pretty decent support on the daily so I think the bulls will defend that. Earnings have been pretty robust so far, and that may well continue, though Caterpillar (NYSE:CAT) will be one to watch - a slow down in construction filters through to that and that drags the US markets down. With Trump's planned construction boom though, we may see an uptick in earnings in anticipation...maybe!
Anyway, back to the FTSE and they are the key areas I am looking at for today, resistance at 7470 and 7515 and support at 7420.
