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FTSE 100: Resistance At 7175

Published 27/01/2017, 09:11
UK100
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US500
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DJI
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DE40
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Support 7154 7141 7125 7094 7090 7082 7057
Resistance 7163 7166 7172 7176 7187 7339

Well not too much to say about the FTSE 100 yesterday as it didn't really do anything. A very tight range between 7150 and 7175 and that was about it. Gold continued to slide, whilst the Dax continued to rally. US consolidated on its new record breaking high with the Dow holding above the 20000 level, proving its not going to be a short term thing, but the S&P failed to hold 2300 which it had briefly breached.

Despite data published by the Office for National Statistics showing the UK economy grew by 0.6pc in the final three months of 2016, matching the expansion in the previous quarter, the FTSE 100 still failed to move much. Thursday's figures mean the economy expanded by 2pc over the year. This afternoon at 1330 we have the annualised US GDP, forecasted at 2.2% versus 3.5% previous, as well as durable goods, consumer sentiment and inflation expectations.

We also have the PM in the USA meeting Trump today and giving a joint press conference later. Could provide some clues of the relationship between Britain and the US going forward.

FTSE 100 Outlook and Prediction
As it's Friday, I wonder if it will have a bit more movement than yesterday. Usual Friday caveat applies to remain nimble today. Initially, I am looking at a dip down from the 7175ish area. The daily pivot is at 7166.

We also have the top of the 10 day bianca at 7172, the 30min 200ema at 7176 and R1 at 7182. So a cluster of resistance levels here, which if they hold and the bulls don't break above 7175 with any vigour, may well see us get a drop down to that 7135 low area again. If that breaks then we are looking at 7085, though I don't think today will be negative enough to go that low (famous last words maybe!). If we do see 7085 then a long is probably worth a go here.

The 2 hour chart has gone to a weak bear set up for me after we trod water for most of yesterday on the FTSE, though the bulls will be keen to get prices back above 7175. If they do manage that, then entering a long at 7175 for a run towards 7200+ could pay off. A lot of traders will be watching the May/Trump press conference for clues.

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