6th June 2017
Well yesterday was a bit of a damp squib with nothing much happening. The FTSE 100 had a slight dip of 20 points down to the higher support at 7520, bounced back 20 and that was about it. Gold hovered around the 1280 level for most of the day, and there was a 4 point range on the S&P over the entire session. Lots of traders keeping their powder dry ahead of the election on Thursday, as well as a bit of general uncertainty.
There are still 77% of IG clients short on the FTSE 100, so I imagine they will want to pop the market higher to stop out a few more retail shorters – the market wont drop hard while so many retail punters are short. Usually!
I mentioned yesterday that there was support between 7509 and 7520 and it was the higher support that held well. Should the bears break below this, and it is bear Tuesday after all, then we are looking at 7470 where we have the 25ema on the daily chart. The 2 hour chart is still bearish, and the ASX200 trended down for most of its Tuesday session – a pattern that we may well do also.
FTSE 100 Outlook and Prediction
I’m expecting a bit of a weak day today. We were pretty flat yesterday, the election gets nearer, the polls have narrowed, the ASX200 trended down all day, Asia was mostly lower, etc etc. So can the bulls defend the 7520 level? They managed to bounce a bit off it yesterday but a break of this opens up the 25ema on the daily at 7570 – a level that I think we may well hit today.
Want more detailed analysis? 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