19th May 2017
Well as expected we got the V shaped dip and rise pattern on most indices yesterday. Shame the FTSE dipped slightly lower than the 7411 support suggested, but it rose pretty well to the 7475 level from 7390 and has stayed there overnight. The S&P also bounced well, again, just moving slightly below the 2352 support before climbing to 2375. The Gold short worked well as you would expect as indices bounced, with a decent decline from the 1264 resistance area. Dipped below the 1250 again as well, but any further index weakness will probably see it break through the 1264 resistance area.
The FTSE 100 today sees resistance at the 7490 level on the 2 hour chart, and we will see if yesterday was a dead cat bounce after Wednesdays drop, or a proper buy the dip move. The ASX200 once again had a dip and rise session on Friday so we may well see a similar pattern. But bear in mind its a freaky Friday session and can be a bit strange!
FTSE 100 Outlook and Prediction
For today I am planning on shorting off the 2 hour resistance at the 7490 area, and am also watching the fib level at 7504 for some bears to reappear. I think we might well see a decline down to the pivot area at 7450, and possibly further if investors get nervous again and are wary about holding longs over the weekend. Trump is visiting Saudi this weekend. After Saudi Arabia, Trump visits Tel Aviv and Rome before heading to a NATO summit in Brussels and the G-7 meeting in Sicily.
Should the bulls break 7504 then we are likely to see them be pretty boosted and get a rise towards the 7586 area where we have the top of the 2 Bianca channels, though I think this may be a bit optimistic for today.
On the bearish side, if the bears were to break below the pivot at 7450 then a revisit to 7400 looks likely, with a brief pause at 7439 where we have the 30min coral (now green and showing the trend is up on this shorter time frame. The trend on 2 hour and above is bearish still).
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