So yet another twist in the Brexit saga, with Boris defeated on Saturday and a "non" to further delays as well. However, in Berlin, Norbert Röttgen, the chairman of the German parliament’s foreign affairs committee, called for a long Brexit delay in order to provide time for a second referendum. So, it's still chaos really. As such we will probably have a week much like last weeks, with most of the moves driven by cable.
The FTSE 100 is looking fairly stable initially, and a drop down to the 7140 level looks likely. If that holds (and Fridays low was 7135) then we should see a rise towards the 200ema on the 30min chart at 7179, while the bulls will be keen to push past the 7200 level to target the 7214 fib level.
Above the 7220 area then we could well see a rise towards the 7240 and 7260 (daily resistance and also just above R3), especially if cable drops off. Though its actually held up pretty well so far, around the 12900 area. Just above the 7260 level we also have the 200ema at 7276 and I think that we may well see a stutter here or just above (the next daily resistance is at 7300, so a possible profit taking spot) should we get that high today. Will we have a Bull Monday?
If the bear were to break below the 7135 level then a drop down 7096 and the bottom of the 10 day Raff looks highly likely. Will this hold? Maybe, if cable and the news play the game, otherwise a drop down towards the recent low at 7007. If this were to break then things get pretty bearish, but I don't think we will be testing that level today. The daily chart remains bearish and the bulls will need to break the 7215 level really (and make it stick) to get that bullish. The backdrop really isn't on the bulls side at the moment though!
So for today, still remaining a bit cautious but as long as the 7135 level holds then a rise towards 7180 and possibly 7214 looks possible, this morning at least.