Support 7152 7145 7143 7132 7083
Resistance 7169 7189 7194 7203 7260
The bulls just about managed to hold onto the 7150 yesterday for another modest rise to a high of 7180 after hours, before a drop back again. The earlier long from that level worked well for a rise to 7175 on the court ruling. From the bull's point of view, they needed the FTSE 100 to close above 7145 as a close below that would set up a trip down to 7085 pretty quickly.
With that holding the 2 hour chart remains bullish but the bulls will need to break through 7190 to push any higher, as we have resistance here from the 200ema on the 30min chart, for a push to 7260. The UK government lost it's appeal in the Supreme Court yesterday, so Parliament will have to vote on the invocation of Article 50 in a blow to the PM and dragging out the whole Brexit debacle longer.
FTSE 100 Outlook and Prediction
We have dropped back from the 7180 area tested after hours last night, and I think we might see a retest of the 7145 level today. We have the bottom of the 20 day bianca at 7132 which may well hold, however, should the bears break 7145 it makes things look a bit more bearish for a trip down to 7080. The US pushed on well during their afternoon session, with the Dow looking like it might challenge for 20k again soon, only 50 points away at the moment and such a headline would be good press for the new President.
I'm actually still feeling fairly upbeat for the moment and feel that this is just a pullback from the overbought 7355 level and may well see some more upside yet. Of course, after that then we may well get a bigger decline. For today though, I think buying the dips around the 7145 area will be ok, but should that 7132 level break then a flip to short to test 7080 is probably called for.
Initially, the bulls will need to break the daily pivot at 7170, so we may well get an initial dip from this level. Gold did eventually fall back from the 1215 area as expected but it took a long time to do so. Such a drop back could be argued that we will see a rise on the indices. However, things are still mostly politically and currency driven, making it just a bit harder to call.