Support 7014 7010 7006 6988 6958 6938 6920
Resistance 7038 7047 7098 7132 7151
The Dow Jones has come incredibly close to 20000 but hasn't managed to quite reach it yet. There must be many eyes on it at the moment waiting for that mythical round number to create yet another new high. It stopped just 11 points short so far, back on Tuesday. If there is a last minute continuation of the Santa Rally, then we might see it today or tomorrow. Yesterday's FTSE 100 short at 7056 worked well, nailing the high of the day pretty much though it slowed right down once it had dropped to the 7030 support area. Its held that level overnight as well, despite a decline in Asian equities.
FTSE 100 Outlook and Prediction
We might well get a bit more bull for the last 2 days of the trading week before Christmas, with a push up today from the 200ema level on the 30min chart at 7014, even with the currently low volumes. The bulls will need to break yesterdays high if they do, and we also have R1 at 7052 to break as well as the 7047 resistance on the 2 hour chart.
If they do manage to break this 7050 area, then 7098 is a possibility where we have the top of the 10 day bianca channel. Above this then 7140 is the top of the 10 day raff. It was a bit of a poor show from the bulls yesterday though, so will be interesting to see what it does today.
Support wise, we have the 7014 level mentioned, with 7010/7006 and 6998 below that. If it gets really bearish, the daily chart has support at 6925. At the moment, the charts are looking bearish with that fairly static day yesterday and overnight. I will try a long at the 7011 area and see what it does, if nothing then probably flip to short. But bear in mind that the bulls will be pretty keen, I feel, to hold above 7000 for the year end.
