28th June 2017
The picture is still bearish overall with the resistance at 7480 with the daily channels, and the 7460 area with the daily moving average. The slide from the 7465 area is still going, so if the bears can break 7400 and then 7380 we could be on for that slide lower. The 2 hour chart has resistance at 7427 and 7433 now. But, we had a bullish ASX200 today. There is also a 2.26 dividend to be applied to the FTSE 100 today.
Another day, another ransomware attack on going. This one looks like it started in Ukraine but has spread rapidly again. Ransomware now seems to be the method of choice for the criminals these days rather than stealing the data itself.
In Asia, a selloff in technology stocks extended into the Asian trading session, while bank shares rallied with government bond yields on the prospect of higher interest rates.
FTSE 100 Outlook and Prediction
I think we may well see a break of 7400 today, which would lead to a quick drop to the key support area at 7380. If that breaks then the bears are going to gain a fair bit of momentum and we could be heading down to 7300 or lower. The bottom of the 10 day Bianca is 7381 today and with the 20 day just below that then the bulls will have a reason to hold this support, even if the non technical backdrop is pretty dire at the moment.
The powers that be are still concerned (and rightly so) about the amount of debt and over leverage that exists out in the general population, but that’s what happens when you make it cheap to borrow – people go for it!
We have a small dividend of 2.26 later which probably wont excite the divi hunters too much.
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