Support 7023 7003 6999 6998 6911 6906
Resistance 7054 7065 7078 7085 7132 7158
Bulls finally showed up at just below 7000 yesterday for a quick run up to the 7040 level, where it then stalled and remained for most of the session. Bit annoying that the 7023 resistance level was just missed first thing as it dropped to 6992, but broke the second time so the short took a small hit. Frustrating, that was off the 2 hour chart as well, which is usually pretty good. Being a fairly low volume week, some overshot is expected at the levels though. I still think that buying the dip this week is the best plan though to target 7065 and possibly 7100.
FTSE 100 Outlook and Prediction
As mentioned, I feel that buying the dips this week is still a decent plan of action. For today we have initial support at the daily pivot at 7023. The ASX 200 and Asia markets were fairly flat overall, with the ASX dropping from 5637 to 5623 during the entire session so far. If that follows through to the FTSE for today, then it might be a bit of a boring one. Anyway, if the 7023 support level holds then I can see a rise towards the 7056 resistance level (and maybe a slight overshoot again to 7065) and then a fairly static day from there. We have the top of the 10 day bianca at 7085 so if it pushes further up then this level is likely (and may some bears appear too).
The 2 hour chart, having had the bearish entry fail yesterday, has gone bullish again, though it's pretty weak. Should the bears break the 7023 pivot level, then the 200ema is at 7004 for the next support area. We also have the bottom of the 10 day bianca at 6998. I would expect 7000 area to hold today if it got that low. There is a very small 0.2 divi today. So, simple plan really, slight bullish bias and buy the dips.