FTSE 100: Resistance At 7085
FTSEDayTrader Limited | Dec 23, 2016 08:27
Support 7052 7047 7045 7032 7027 6976 6932
Resistance 7071 7085 7116 7158 7169
That was a pretty slow moving day yesterday with the FTSE rising slowly helped only by a falling pound and rising oil. I expect we will see that 11200 level again on cable that we hit the day of the Brexit result. The ASX 200 dropped and bounced a bit during their session, so we may well do the same to close out the pre Christmas period. The bulls are still pretty keen to keep it above 7000, with 7085 looking like resistance for today. So, for the last trading day before the Christmas break I am expecting a low volume dip and rise today.
FTSE 100 Outlook and Prediction
So here we are, not quite the last trading day of the year, but the last one before the Christmas break. Will the bulls manage to keep it above 7000? I think they will and I think that a dip down to the bottom of the 10 day bianca channel at 7032 is a good spot to try a long for a brief rally to 7085 today. The bulls managed to break the 7057 resistance level yesterday (it was 50/50 if they were going to be able to), but didn't really manage to hold above it, dropping back to just below from the 7065 level. If they manage another push up today, then 7085 might well see a similar reaction with a dip back.
We also have the daily pivot for support at 7045, just below where we are looking at opening. With that flat to slightly bullish day yesterday the 2 hour chart has once again changed to bull, showing support at 7052, pretty much where we are as I am writing. Overnight has remained fairly static at the 7055 level. Lower support is at the 200ema on the 30min at 7027.
On the bigger picture outlook, the daily chart still has good support at 6932 - a level that will be worth a swing long from I am thinking. That might well garner a rise to 7200 before the downside kicks in during Q1 next year. The coral on the daily chart has just gone green showing a bullish trend (quite late for this colour change as we have had a rise since the election result) so its probably a weak one.
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