FTSE 100 Support 7006 6988 6986 6970 6965 6944 6907 6899
FTSE 100 Resistance 7009 7013 7023 7065 7107 7110
Felt like the markets had already started their Christmas holidays yesterday, with a very flat and lacklustre day across the board. There was a little dip to start with as the FTSE 100 went below 7000, then rallied back to 7010. Gold hovered around 1339, Dax around 12400, and the S&P around 2265.
Even a day of some fairly major news events didn't inject much life, with an assassination of the Russian ambassador to Turkey, a mass killing in Germany and trouble in Switzerland. The Chinese have now also returned the US drone they nicked last week. The ASX 200 (Australia) was fairly flat today ahead of the BoJ announcement shortly on further stimulus, and they have kept rates on hold. I think the FTSE 100 has a little further to pop up this week before the year ends, despite the geopolitical incidents yesterday.
FTSE 100 Outlook and Prediction
The FTSE 100 closing above 7000 suggests that there is some strength still in it and as such, I think that buying the dip this week is probably a good move, if only to catch the seasonal Santa Rally move. Its possible we get a bit more of a push higher this week, but the bulls will need to break 7023 where we now have resistance on the 2 hour chart. If they can, then a trip to the top of the Bianca channels at 7100 looks possible, with a stutter at the 7080 area.
Support wise, today we have the 200ema on the 30min chart at 6986, with the 10 day bianca channel below that at 6970. A dip to this level represents a good spot to go long on. I think the S&P will push to 2300 before the year is out as well, before the tide turns and it retreats back towards a much lower level.
So, my plan today is to short around 7023 for a dip down to 6970, then see if we get a bounce from around that area. 