18th July 2017
The FTSE 100 short from 7420 yesterday is still running with the stop at breakeven at the moment. After the bell the bulls fought back a bit managing a high of 7415. Was a bit of a shame that the S&P missed the 2456 long order by half a point as it rose quite nicely as planned, to reach a session high at 2462. I think we can safely say that was a bull Monday yet again though! Gold continues its rise, nearing the 1240 level now, and looking like the recent low at 1205 is the short term low.
Politics are coming to the fore again both in the US and UK, with UK inflation data out later for June, with 2.9% predicted.
The dollar and U.S. equity futures retreated on signs that the U.S. health-care reform bill is effectively dead in its current form, casting a cloud on President Donald Trump’s broader economic revitalization agenda.
FTSE 100 Outlook and Prediction
Well we had the bull Monday yet again so will we get the bear Tuesday? The Asian markets declined, along with the ASX200, halting a 6 day surge that pushed the regions shares to the highest since 2008. I am still running a portion of the 7420 short from yesterday with the stop currently set to 7415 locking in 5 points. Have taken some profit on the dip down to 7400 as you know.
For today I am thinking that we may well also see a decline, and inflation data at 0930 may well help that. The 2 hour chart is bearish still, with resistance from the coral at the 7413 level. There is the daily pivot at 7405 for initial resistance with 7429 higher up where we have the top of the 20 day Bianca channel. I mentioned yesterday that we may well range between 7350 and 7450 for the early part of this week, so if we do get a drop it will be interesting to see if the bulls can defend again. They managed to bring it up on Friday from the 7365 area to back above 7400 but global concerns may well weigh on it today.
Support wise, we have a key fib level at XXXX, then XXXX so this cluster of supports around this area might well temper any fall. Gold has been steadily rising over the past few sessions as well, and with cable above 130 and holding for the moment, that could also weigh on the FTSE100.
So looking bearish for today.
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