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FTSE100 - new month money but bearish

ByFTSEDayTrader Limited
AuthorNick Hilsden
Published 02/10/2023, 11:31
UK100
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And another new month already as September seems to have flown by. We should get an initial kick up as the new month money flows in, and a rise to retest the 7650 level looks like it will play out initially. We then have R1 and the key fib here which may well hold as initial resistance, for a drop down to the 7550 area.

That said, there is initial support from the green 2h coral at 7595 to start with today, which should lend weight to the initial kick up. I would also like to see the Dax40 hold the 15370 level initially. 

The 10d Raff channel has turned to bearish now, following the weak second half of September and the top of that channel is around the 7670 area coinciding with Friday's high as well. As such, above 7650 we may well see a stutter here, and we are also just shy of the higher daily resistance at the 7681 level. I think a short around this area is probably worth a go today too. 

Above 7680 then 7713 is R2 and the bulls will of course be trying to break above 7700 once again. Crisis averted in the US in terms of the government shutdown being cancelled which should help the US bulls this afternoon too. 

Support wise for the FTSE100, then below the 7550 level the key fib at 7533 is the next one of note, though I would be surprised if we get that low today, being the start of a new month.

With the longer timeframes (2h, daily) looking bullish to start the week then we may well start to see the strength return during this week and buying the dips this week is probably a good strategy. Initially though we have some decent resistance levels in play that are worth shorting... something for everyone!

Good luck today

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