FTSE 100 Support 7176 7173 7153 7120 7111 7070
FTSE 100 Resistance 7181 7195 7199 7229 7260 7305 7364
A bit of a lacklustre day on the FTSE 100 yesterday, considering that we had the Dow break 20,000 for the first time, and the S&P make a new high at 2299 (now at 2303), whilst the Dax continued to climb. The Brexit vote, as well as the GBP/USD (cable) rate weighing on the FTSE yesterday.
There was a brief bit of excitement as it dropped from the 10 day bianca at 6204 to test 7170 where is then stayed for most of the day. Gold continued to decline, and has dropped off further overnight to dip below $1200. I think we can say that the Trump rally has resumed in the US though, and the Dow is likely to pop up a bit higher (had mentioned 20200 previously) to do over the shorters that piled in at 20000 (probably mostly retail).
FTSE 100 Outlook and Prediction
For today, I think the other indices will push higher again, whilst the FTSE drags its heels. It is concerned about a “soft” Brexit following that vote (though the Dax/Germany prefers this), and also has cable rising above 12600 to temper any FTSE 100 bullishness. As such, we might well climb towards the 10 day raff channel (and R1) at 7195/7200 before a drop back to the pivot (we dropped back from the 10 day bianca yesterday so there is some bear power at these daily channels). Above 7200 then we have 7229, but the bulls will really need to break 7260 this week to reverse the bearish overtones on the FTSE.
Support-wise today, we have the pivot initially, at 7176, with 7146 below this for S1. 7111 sees the bottom of the 20 day bianca channel, with 7070 lower down. If we were to close below 7145 then I think we will see this lower support. So far the bulls have defined 7145.
I don’t want to fall in love with the upside as the Dax and S&P are both at the top of their raff channels, along with the FTSE at its 10 day. We are also testing or above the top of the bianca channels on all 3 as well. RSI(10) is also above 70 on both of them (and the Dow). Breaking out but likely to get a dip back to retest if the pattern plays out.