27th June 2017
Was a bit of a lacklustre day on the FTSE 100 yesterday though we got the rise and dip as Bull Monday once again delivered for most of the day. The S&P stopped bang on 2450 and dropped sharply on the US news that the Supreme Court in the US ruled allowing the travel ban to be partly reinstated. Gold fell sharply at 9am as a result, apparently, of a fat finger sell order. Though of course it would have taken out a load of stops on a lot of longs too. The Tories and Dup have formed a coalition so May can have a majority government. Only cost a billion pounds and a massive waste of time!
Despite popping up slightly above the 7465 resistance level yesterday to test the 7480 area the FTSE has fallen back and the daily chart moving averages are still bearish – thus we may well be on for a further drift down. Lots of professional fund managers are wary about investing at these lofty levels (here) and also we are heading towards the summer period. However, the end of a month does usually see some buying.
FTSE 100 Outlook and Prediction
For today I am looking at resistance at the top of the daily Bianca channels at the 7490 area and support from the 2 hour at 7430. However, I think that there is a strong chance of further weakness and any bounce will be short lived. My preference over the next few sessions is for a drop down to 7300 and possibly lower. The daily chart is still bearish with the 7465 resistance area still in tact as the bulls were not able to make yesterday rise stick.
If the 7429 area breaks today, and it is bear Tuesday after all, then we could have a fairly weak close to the month. I mentioned yesterday that my stance was short the rallies and that is still the case for the time being.
The bottom of the Bianca channels are both at the 7380 level so we may well see a bounce here too, though again, it is likely to be short lived.
Want more detailed analysis for FTSE 100, DAX, Gold and S&P? Then please join our active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- WhatsApp and webinars group membership for discussion and realtime trade updates