20th June 2017
The 2 hour chart is still bullish with support today now at 7480 so still a case of buy the dips. However (there is always a however isn’t there!) the top of both the Bianca channels are at 7542 for today so this will be the early hurdle for the bulls to break.
The Dax charged out the blocks yesterday, fuelled by Macron’s majority win in French parliament, and double topping with 14th June high at 12920 area. Might push for a 13k print today.
Asian equities saw little in the way of firm direction with the Nikkei 225 supported by a softer JPY and the ASX hampered by commodities
FTSE 100 Outlook and Prediction
For today I am thinking we will get a dip and rise pattern, with support being tested at the 7480 level. If we do get this low then this is a decent spot for a long for a climb back, as the 2 hour chart has support here. I am thinking that we are on for a retest of the 7600 level soon, and also possibly 7650, but as mentioned above we do have the Bianca channels showing resistance at 7542. We have tested this level overnight and dropped back from it but the bears aren’t particularly strong. That said, the ASX200 was pulled lower by weaker commodity prices today, and that may well carry through to the FTSE 100 for a bit of bear Tuesday, certainly to start with.
Gold has continued to decline from its recent test with 1300, and stocks are actually holding up pretty well, with the FTSE 100 holding onto its gain from the 7385 bounce last week. The bulls will now need to break the 7550 level to push higher, towards the fib level at 7572.
So, probably a similar pattern to yesterday with the dip and rise, and hopefully a decent test of the Hull moving average on the 2 hour chart. Stay nimble!
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