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Dip And Rise For FTSE, 7412 Resistance

Published 28/11/2017, 09:11
Updated 14/05/2017, 11:45

This morning I am expecting a dip down towards the support area at 7350/7360 and then a possible bounce back towards the 7400 level. The bulls will be keen to get the price back above 7400 asap really, with the aim of testing 7460+ this week. That was much stronger resistance at 7440 yesterday than I was expecting, so the bears are still holding (just slightly) the upper hand, with a bearish daily chart. The 2 hour chart is also now showing a red coral at 7414 - which is a downtrending signal. The bulls will need to break this resistance to gain some strength.

After the rise and dip yesterday we may well have a bit of a bear Tuesday today, and see a dip down. If the 7360 level is broken with conviction then the bears will likely pull this down towards 7300. I have gone for a trade plan long at 7352 as there are some decent supports just below the 7360 level as well as you can see from the list below, so if we overshoot slightly we can hopefully catch a bounce, if we get one.

We are nearly at the end of the month so might well see some buying come in for the possible stronger December, though that 7350/60 looks pivotal as to whether it starts sooner or later. The S&P stayed above 2600 for most of its session yesterday so is much stronger than the FTSE still, with the rise in cable holding above the 1.33 level weighing the FTSE down.

Today we have the BoE publishing the annual stress tests alongside its Financial Stability Review looking at the health of U.K. banks.

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