Stocks in Europe pushed higher yesterday but it was a heavily muted day overall. In London the benchmark index finished 0.06pc up to 7,622.35 while the FTSE 250 was 0.18pc higher to 21,756.05. In the eurozone, the DAX and CAC ended just 0.08pc and 0.04pc higher respectively.
FTSE 100 Outlook and Prediction
The bulls still couldn't really pull away from the 7600 level with any conviction and after a fairly flat day overall, the 2 hour chart has gone bearish again with resistance at the 7627 level for today. We also have the 30min coral here which has gone red (shows a downtrend). As such, we may well see an initial stutter at this level today, and a drop down towards the S1 level at 7586 looks likely. If this holds then its all good for the bulls still and a rise towards the 7666 level is still on the cards.
However, if the bears start to get some momentum and we break below the 7580 level then a short to target the 7550 or lower level is probably a decent play. Below the 7555 support level then 7525 and 7500 beckon. That said, the 25ema on the daily is at 7539 and we haven't tested that since the move down and back up after the US/Iran flare up. Watch the 7580 level though and short a break of this, at around the 7576 level if the long gets stopped out.
If the bulls manage to break the 7625 level this morning then we should see some more optimism ahead of the phase 1 signing today. A rise towards that 7666 level is therefore likely. Above this then a test of the top of the 10 day Raff channel at 7730 is on the cards still, even more so if the bulls can pull away from the 7600 level.
So for today, expecting a bit more bullishness, if the bulls can break 7627. Watching for support at 7580 but a break of this is worth shorting. Bit of a mixed bag then but a few levels looking relevant... Good luck today!