FTSE 100: Can The Bulls Push It To 7300?
FTSEDayTrader Limited | Jan 11, 2017 08:50
FTSE 100 Support 7262 7261 7257 7235 7228 7226 7095
FTSE 100 Resistance 7294 7297 7298 7316 7320 7335
There was actually some bearish activity yesterday, not at the 7250 level this time, but from 7270 instead. However, it was fairly short lived as the bulls came fighting back, as they have such significant momentum behind them at the moment. That said, the US rose then fell away during their session, which was a bit frustrating for the SP short at 2272.
The gold long from 1182 worked really well, and that sort of strength usually proceeds a bit of a pull back on equities. Hasn’t seem to have applied to the FTSE. Of course, the further slump in sterling played a large part yesterday. The pound languished at two-month lows against the dollar and the euro, tumbling to $1.2108 and €1.1508, respectively, as fresh ‘hard Brexit’ fears kept the local currency under heavy selling pressure.
As well as reaching a new intraday high, by hitting a level of 7,284.81, the FTSE 100 also delivered its eleventh day of gains in a row, matching the longest winning streak the index has ever produced. In its 33-year history, it has only enjoyed the same run of good fortune on three occasions: in 1997, 2004 and 2009.
FTSE 100 Outlook and Prediction
For today I am thinking that we will approach the 7300 level and test the top of the bianca channels once again at the 7295 area. We also have R1 at the 7297. If we do reach this area, then I think that we will dip back from there towards the pivot and 2 hour support at 7260. Obviously the bulls will need to break through yesterday's high at 7285 to do that. The trends are all still up, despite the daily RSI now printing 87. If we were to break through 7300 then 7320 is the next area of resistance and worth a go shorting around here.
On the flip side, if the bears do appear today then they will need to break the pivot at 7260, which then leads to 7230 where we have the bottom of the raff and Bianca 10 day channels. Ultimately if the bears were really to go for it at any point soon then there is support at 7180.
To start today though, it all looks pretty bullish so I am thinking rise then possible dip from around 7300. There is no dividend today either.
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