FTSE 100 Support 7278 7261 7260 7252 7180 7150 7112
FTSE 100 Resistance 7294 7298 7312 7318 7343 7358
So it begins, the Trump volatility. Was actually quite surprising to see the 7320 level get hit yesterday as I thought that 7300 might have put up a bit more of a fight. However, the rise with the long from 7260 worked well, as did the 7320 short. Gold has certainly reacted bullishly since Trump's speech, now almost back to $1200. I might be bold here and say that maybe 7330 is going to be the short term high and we start to get our retrace now.
FTSE 100 Outlook and Prediction
Gold has steadily risen over the past 12 hours, and has nearly reached $1200, as such I am thinking that we might have seen the short term top at 7330 and are on the cusp of the retrace that we have all been expecting. It's probably taken out enough shorts with the rise to that level, though above this there is still resistance at 7351. The 30min FTSE chart has gone bearish for the first time in a while and is showing resistance at 7294, where we also have the daily pivot, so I am thinking that a short here on any initial rise at the open is a good plan.
Above this, then shorting the 7355 area is my plan B. I don’t think it will get that high as yesterday did put the cat amongst the pigeons a bit and lead to some uncertainty, on top of an already over inflated rise – daily RSI was 88 at one point yesterday and is currently at 83. If that crosses down through 70, then the bears will feel more confident too.
All in all, a fairly simple plan for today, looking for a run down to the 7250 support and possibly lower. The narrow channel on the bianca chart is going to have a breakout soon, it just a case of guessing which way!