7385 resistance held | 7308 support | NK missile test | still bearish

4th July 2017

Well we got the slow steady rise to the 7385 area as expected, hitting the resistance about half 3. The short there at 7380 worked well for a 20 point drop, and still running now. The ASX200 had a pretty bullish session today hitting its R3 level in a fairly steady climb. Gold fell sharply yesterday, breaking the 1231 support level, and looking like its heading down to 1215.

North Korea test-fired an intermediate-range ballistic missile toward Japan earlier today, escalating tensions over its weapons programs ahead of a meeting between the leaders of the U.S. and China this week in Germany.

The US markets are closed today for their Independence Day holiday.

Stocks in Asia dropped as a selloff in Hong Kong offset a rally in Sydney. The yen strengthened after North Korea test-fired a missile, while the Aussie dollar slumped as the central bank left rates unchanged.

FTSE 100 Outlook and Prediction

Bear Tuesday today and with the US closed so we may well have a bit of a slow one. The saving grace for the bulls is that the ASX200 put in a bullish performance and we do sometimes follow their move (both being commodity heavy).

I am still running my 7380 short from yesterday and am aiming for a dip down towards the 7315ish area, maybe just below that as we have a decent fib level at 7308 for today. That said, the 2 hour chart is bullish again after that rise yesterday, with support now at XXXX. May well take some profit there too.

If the bears do go for it, I am still watching for support at the XXXX level – worth trying a long here when/if seen. The daily charts are still bearish though, so the bulls have a battle to get back up to 7600 anytime soon.

The 30min chart is bearish to start with today, with a negative RSI divergence in the night, and the 200ema on the 30min holding as resistance.

So, expecting a slow decline down to XXXX really, retracing most of yesterdays rise. If the bulls were to break 7385 then 7405 looks very likely, and might see a stutter here. Bulls will need to be quick out the blocks today.

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