FTSE 100 -The week ahead – 9th January 2017

As I write this we are in a fairly steady bull trend since the start of the trading year for the FTSE 100 and with the bulls breaking and holding above 7200 on Friday, its holding up, despite looking toppy. The reason I say that is that we have a daily RSI reading of 85, and whilst this can remain overbought (or oversold) for a while, while the markets move higher or lower, eventually it will drop.  I mentioned in my 2017 Outlook Post that 7250 was looking like a decent resistance level and that has formed as the top of the daily channels for today, with both the 10 day and 20 day showing that area as resistance.

To start the week I can see gold holding its lower support area at around 1170 and moving higher which might well tally with a downturn in the indices this week. Ideally I am looking for a move down on the FTSE 100 to the 7060 area where upon a decent swing long entry presents itself. This could then see a rise towards 7350, if the bulls were able to break a potential double top at 7250.

On the flip side, the bears have been arresting the rises recently, thus slowing the move higher. If the market is to fall from the 7250 area then initial support is 7180 where we have the bottom of the 20 day channel. Below this then 7100 is viable, with the 7060 looming into view at that point.

FTSE 100

This week sees everything to play for. The media are getting pretty excited with the continuation of the rally from the end of 2016, the Dow just about testing 20000, and new record closes each session on the FTSE 100. Of course, seasoned traders have seen this all before and there will be the inevitable pullback at some point soon. While it is grinding higher though its better to wait for a confirmed sell signal rather than try and guess the top. A confirmation that we are still waiting for at the time of writing.

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Nick has been actively spread betting since 2007 just before the financial crisis hit, having traded shares for many years prior to that. Hilsden Trading (formerly FTSE Day Trader) was established as a public website in 2010 so thoughts and analysis could be shared for discussion with other traders. There is now an active private community with over 350 members where members benefit from daily analysis, a live trading room and updates throughout the day.

Using a mixture of technical indicators and fundamentals for his analysis, coupled with some proprietary signal generators created over the years, means that Nick’s daily analysis is relied on by many traders, both private members and that posted publicly.

As the Chief Analyst and CEO of www.hilsdentrading.com Nick has conducted seminars, private mentoring and helped thousands of new and not so new traders over the years.

Nick

Nick has been actively spread betting since 2007 just before the financial crisis hit, having traded shares for many years prior to that. Hilsden Trading (formerly FTSE Day Trader) was established as a public website in 2010 so thoughts and analysis could be shared for discussion with other traders. There is now an active private community with over 350 members where members benefit from daily analysis, a live trading room and updates throughout the day.Using a mixture of technical indicators and fundamentals for his analysis, coupled with some proprietary signal generators created over the years, means that Nick’s daily analysis is relied on by many traders, both private members and that posted publicly.As the Chief Analyst and CEO of www.hilsdentrading.com Nick has conducted seminars, private mentoring and helped thousands of new and not so new traders over the years.

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