Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

FTSE 100 bulls defend 7000 but for how long

ByFTSEDayTrader Limited
AuthorNick Hilsden
Published 20/08/2021, 08:40

Well the news flow has turned a bit negative but the markets are holding up, with the brief move below 7000 on the FTSE100 shaken off as the bulls fought back yesterday. Overnight has seen things being fairly stable to the point that we have a green 30m coral to start with and support from that at 7053 initially. Should we break below that though the bears will likely take it down to 7000 again and with S1 and the key fib here we may well see a bounce again here.

We also have the bottom of the 20d Raff channel here so the bulls will certainly be keen to hold above this. However its Friday, so likely to be odd! 

Initial resistance to start with is at the 7072 level where we have the 30m 25ema, and the bulls will be keen to break above this. That then opens up a test of the 7106 level where we have the key fib, and just below the 30m 200ema which is at 7120. With R1 at 7134 I think the 7125ish area may well see a stutter initially, as things remain jittery and investors are pretty nervy - especially as we are still in the weaker August and the back end of it may well be more bearish overall. 

I still think that we may well end the year strongly though and may well see 7500 again this year. 

If the bulls break above 7134 then 7192 is the next level of note where we have R2 - but that does feel a big ask for today. 

Below 7000 then the bears will be in the driving seat and we likely see 6950 and then S2 at 6932 looms large too. 6950 could well see a bounce though so would try a long here. 

That said, I am watching 7050 and 7000 as support and 7100 and 7130 as the key resistance levels for today.

Have a good weekend and good luck today. 

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.