2nd August 2017
Well we certainly had a bit of a bull Tuesday as the first of the month new money flowed in. After hours Apple delivered better then expected results which saw the futures prices on the US markets rise, and that followed through to Asia where technology stocks climbed.
The Dax fought back yesterday after a bearish couple of weeks to make some gains, finally catching up with the others and shaking off the diesel gate burden that has dragged it down.
For today I am looking at support at 7400 and resistance at 7480. We may well see both those levels and we also have a dividend of 8.2 being applied today. This is fairly decent so likely to bring the divi hunters out at about 3pm onwards. What is the divi? Click here
FTSE 100 Outlook and Prediction
For today I am watching 2 key areas as mentioned above – support at 7400 and resistance at the 7470 to 7480 area. I am thinking that we may well see both these levels today. Despite the rise in tech shares after decent Apple results, the ASX200 has had a more downbeat day an looks to be closing on its low, having dropped off steadily all day.
For us, I think a decent dividend of 8.2 will bring the buyers out later and as long as the 2 hour support at 7398 holds if tested then the ball is still in the bulls court for the moment.
If the bears were to break below the 7398 level then we are looking at the fib level of 7373 for the next support, 7340 for the 20 day Raff and 7326 below that – the bottom of the 10 day Bianca channel and a likely bounce point.
Resistance wise, 7471 and 7479 look key levels and the bulls might struggle to break this area. If they do, then it looks possible that we are on for the top of the 20 day Raff at 7550.
BOE
In addition to the dividend, we also have the BoE looming into view tomorrow and possibly with a more hawkish tone, and then NFP jobs data on Friday – forecast is that US employers added 180000 jobs.
So, remember the divi – IG apply it at 4:30, others at 9pm and watch for support at 7398 and resistance at 7479.
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