FTSE 100: Support At 7325, Resistance At 7300
FTSEDayTrader Limited | Jan 18, 2017 08:24
FTSE 100 Support 7244 7235 7225 7215 7185 7160
FTSE 100 Resistance 7258 7285 7308 7330
Well there we go then, we have had the Brexit speech setting out the 12 point plan, which saw the pound rise strongly against the dollar and the FTSE fall away having stalled at the 7355 resistance area mooted a few times. Below I have put the key points from the speech, but as expected, it's generally a clean break from the EU whilst still remaining partners and allies.
The FTSE had support at 7218 after the resistance at 7355 and it dipped slightly below this, but has rallied back overnight. If the bulls can hold that level then the bears might well be on the back foot, but the bulls need to break 7300 to push higher. Yesterday's dip has brought the daily RSI back down to 60, quite a sharp fall in one day from 92 where it was on Monday.
FTSE 100 Outlook and Prediction
Could be on for an interesting day today. The lower support that we had from yesterday at 7215 has held overnight and we have risen to just above the 10 day bianca channel at 7244. We are testing the bottom of both the raff channels here too, so I am thinking that a long around the 7230 area might well be a decent play. The 30min chart could be on for a bullish cross over with the moving averages. The markets have had time to digest the speech and will now be focussing on Trump's inauguration tomorrow. The pound has dropped back about since its rapid rise yesterday, currently down 70 odd pips.
Divi is 2.5 today so bear that in mind if you have a position open at the close. Fairly small divi so not likely to see too much of a rush of buying towards the bell today, but might kick up a little bit around 16:15.
The 2 hour chart is still bearish after yesterday and the drop from the 7355 so we may see some bears enter at around the 7310 area, and we have the coral on it at 7330 also to act as resistance. If the bears break below 7215 today then the next support is 7185 and 7160 below that - this 7160 could be a decent swing long entry, off the daily chart so a stop of about 30 points.
To start with, the 10 min chart is positive, with support at 7335 and 7325 so we may well get an intake rise certainly to the pivot at 7260ish.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.