28th July 2017
Interesting day yesterday as the bears started to sharpen their claws. The bulls failed to break the 7460 level on the FTSE as jitters started across the world. The evening session saw a bit more bearishness as Amazon earnings missed and US shares fell. Cable dipped back a little bit from above 131 so the FTSE wasn’t quite as bearish as it might otherwise have been.
So onto another Freaky Friday. The 2 hour chart has gone bearish with resistance at 7434, while the bottom of the 2 Bianca channels are at 7399 and 7393. If the bears break these then I can see us going to 7340 today. If they hold then above 7435 we have the 7515 level still as resistance – did think we would see 7550 at the back end of this week but the tech sell off and weakness yesterday in the US might have scuppered that!
FTSE 100 Outlook and Prediction
For today we may well see the weakness from the US and Asia filter through to us as well. There is resistance on the 2 hour chart at the 7440 level now and we may well see an initial climb to there as the 7400 holds. If the bears break 7393 then I am expecting a test of 7375 and maybe lower – 7340 is a possibility where we have S3 for today.
If the bulls were to break the 7440 level then I am watching 7475 as the next key resistance area, with the 7515 previous high above that. I am not sure that the bulls will be strong enough to reach for 7550 today – yesterdays weakness scuppered their chances of that test today I think but never say never!
The ASX200 had a weak session – dropping down to S3 and then bumbling along there.
To start the day we do have a positive RSI divergence on the 30min, and coupled with the bottom of the Bianca channels at this level then an initial bounce looks likely, but probably short lived. Shorting the rallies feels a safer play today but do exercise some caution as Fridays are often strange!
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