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FTSE 100: Resistance At 7304, Support At 7240

Published 27/02/2017, 08:48
Updated 14/05/2017, 11:45

FTSE 100 Support 7263 7262 7246 7238 7243 7200 7192 7173
FTSE 100 Resistance 7293 7307 7324 7327 7350 7394

Well Friday certainly kicked the volatility into life with a drop down from 7270 to 7190 and the a climb all the way back again. Could be an interesting week this one wth Donald Trump's speech on Tuesday and some clues as to future policy direction. With the bulls bringing the price back up on Friday we are still within the daily channels, despite that move below them. With the bears breaking below that 7210 support area they will be feeling a bit stronger, with the 7192 level now set as the low water mark that they will need to break.

FTSE 100 Outlook and Prediction
Friday's move down might have wounded the bulls but they are not out of the running yet. With the price moving back above 7260 on the futures prices, it keeps them in the game and a possible rise to 7303 and possibly 7324 which are both resistance levels of note today. The ASX200 had a rise and then dip day, so we might follow suit as traders await Trumps speech tomorrow.

The 30 minute chart is looking bullish to start with with support at a rather close 7267, and then more support at the 7242 level, Mondays usually open a bit choppy, so we may well get a move down to that lower support to also retrace a bit of the bounce on Friday. The usual pattern has also been bull Monday, bear Tuesday recently so we may well see that again.

With Friday's drop it has brought the daily RSI down to 57 and removed some of the overbought "froth" so we may well start to see a push higher - the key will be if the bulls defend 7192 which was the low set on Friday. If that goes then hello 7100!

Those are the 2 main levels I am watching for today - 7303 for resistance and 7240 for support.

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