FTSE 100 Support 7261 7252 7242 7219 7218
FTSE 100 Resistance 7280 7285 7291 7303 7308 7312 7322
We had the bull Monday, will we get the bear Tuesday to complete the pattern? The US was certainly turbo charged yesterday with impressive gains in both theS&P and the Dow. The FTSE 100 climbed from the 7260 level but stopped just shy of the 7300 level, though bullish it was pretty slow - hovering around 7260 for most of the morning. Overnight has seen some downside from the 7290 area so we could well get the bull Monday, bear Tuesday pattern. 7291 is the top of the 20 day Bianca channel for today. As mentioned yesterday we are starting to look a little bit more toppy now, it was just that the bulls were not quite strong enough to get above 7300. We haven't been as optimistically following the US up, but if that turns down then I am pretty sure we will follow it down. The dollar deepened losses against most major currencies after NSA Michael Flynn stepped down amid concerns over the White House national security adviser’s Russian contacts.
FTSE 100 Outlook and Prediction
I am going to go with a bear Tuesday plan for today so looking to short at the 7285 area initially for a run down to the support area at 7250. With any luck it might go lower to the 7220 area. I have resistance at 7280 and 7290 so have split the difference for the entry. If the bulls want to scupper my plan then they will be wanting to break yesterdays resistance just shy of the 7300 level, however, that then opens up the 7312 resistance area where we have a fib pivot and also the 10 day Bianca channel (7308). Tomorrow has a large 28 point divi so likely to see a rise for that, so today the bears could do with stepping up to the plate. We also have a daily RSI of 65 again, having dropped off 69 from yesterday.
It will be interesting to see if the bulls are able to move the price above 7313 as that opens up 7353 for the top of the 20 day Raff, and potentially higher too, though this was January's high so will likely see some reaction. Looking at the US though, it does make you wonder how far its going to go in a straight line, I am sure there will be some bump or other soon that will knock it down a bit. At the moment, its being boosted by the tax cut rhetoric. They will need to deliver some substance to that soon.
So for today, lets see if the bears want to come out and play. The ASX 200 trended down all day, maybe we do the same as though we rose yesterday it was lacklustre.