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FTSE: Can The Bulls Push For 7600?

Published 16/10/2017, 10:12
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Fairly simple plan today really as looking at 7540 to 7550 as initial support and a buy the dip to this area looks like it should then see a rise towards the cluster of resistance levels at 7590 to 7600. Above the 7600 level we start breaking into new highs for the FTSE 100 and the top of the Raff channels at 7650 and 7681 come into play, along with the headlines everywhere about the new records!

Support wise, below 7540 then 7500 is a fairly key area with 7475 below that. If that were to break then the bears are in with a shout of having their moment in the sun and a pull back might materialise, with a drop down towards the 25ema on the daily at 7440. This might be decent support though in this rising trend.

The ASX had a fairly flat session with a slight rise, and with gold rising back above 1300 and the Dax regaining pretty much all of its lost ground recently, there might be some profit taking creeping in. Also watching cable, the GBPUSD rate, as that looks like it could be on for a push back above 133, which will push the FTSE100 down a bit.

So, for today I am cautiously optimistic but as they say, don't fall in love with the upside thinking it is a one way bet at the moment, as the fairly key resistance level of 7600 looms closer.

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