Support 6968 6951 6943 6917 6889 6860
Resistance 6972 7005 7015 7053 7067 7075
A reversal of Monday's down trending day saw a steady climb yesterday as we approach Fed day and the possibility of further interest rate rise news in the US today. The price stalled at the 6975 resistance level but didn't really drop much, holding around 6960 overnight, off the back of a subdued Asian session. All awaiting the Fed! The general consensus is for another interest rate rise, while after today, traders see a two-in-three chance of additional rate increases from the Fed by June, futures show.
FTSE 100 Outlook and Prediction
Can see a bit of a buy the rumour, sell the news type day, with the rate rise already priced in for the most part now. The Dow is nearly at 20,000, FTSE nearly back at 7000, and there is only so long markets keep record highs before they turn. I wouldn't like to guess the high and where it might turn, but at the moment the longer time frame charts are still bullish, with support on the daily at 6890 and 6860. Resistance wise, today we have 7005 for the top of the 20 day bianca, then R1 at 7015.
With a fairly static overnight session, the 10 min chart has gone bearish with resistance at 6972, though we may well see the bulls take charge again initially, today as the 30min chart has support at 6955. The resistance level at 6975 wasn't particularly strong yesterday, netting a few points only, but the bulls have managed to make the 2 hour chart bullish again, with support at 6868.
So whilst its not overly clear, I am thinking an initial rise to 7005 and possibly 7015 before a dip back, probably on or after the news later (19:00 the rate news comes out), though it wont be a big surprise if rates increase by 0.25%. What might well move the market more is the Fed Summary of Economic Projections also released at 7pm.
So, thats the plan for today really, rise and then dip, watching 7005, 7015, then 7032 for a dip back from those sort of areas. Above 7032 then 7130 is possible, the most recent high. 