Support: 6988 6980 6974 6969 6948 6931 6880
Resistance: 7033 7056 7111 7131
Well there was 7000 then, but the Dow couldn't quite reach 20000 for the double whammy. Our early short from the 6964 level saw a bit of a dip down to 6942 but the bulls fought back, determined to reach 7k. Gold continued to slip further, testing 1124 - wouldn't be surprised if we are nearing a low on that soon.
It's looking quite strong to hold above 7000 as we head towards Christmas. However, I am looking at buying a dip today around the 6974 level. We have support on the 2 hour chart here, and Australia (ASX 200) followed a similar dip and rise pattern.
FTSE 100 Outlook and Prediction
For today I am thinking a dip and rise day. If we are going to get a bit more out of this Santa Rally (or start a new one) then next week is the last week for the bulls, and looking at the 2 hour chart we now have support at 6975. There are a few other support levels around this area with 6980 as the daily pivot, a green coral on the 30min at 6988 and the 2 hour coral as 6969.
Below this 6950 is the 200ema on the 30min and lower still on the daily chart we still have the 25ema at 6880 waiting to be tested - usually holds on the first touch after a trend change so am watching that for a long entry (more of a swing trade here).
Resistance wise, we have 7033 for R1, then the top of the 20 day Bianca at 7056. It will all depend on the bulls holding that 6975 and if they can manage to keep things above 7000. Its the end of the week after a fairly strong run from that 6860 level support we had earlier this week, so they may be tempted to take some profit with FTSE at this psychological level, and Dow Jones nearly at 20000.
On the other hand, they won't want to miss a possible final push next week, as Santa rolls into town. As such, I am going to keep it fairly simple today and look to go long around that 6975 level and see how it goes from there. 