3rd May 2017
Good morning. The 7212 level held perfectly yesterday, typically missing our long order by 0.3 points, before rising throughout the day to test the resistance we had at 7261 after hours. Its now dropped back from that level overnight, and is once again testing the 200ema on the 30min. Wasn’t so much bear Tuesday yesterday though!
Apple reported an unexpected decline in iPhone sales on Tuesday night, although its profits rose slightly as it managed to sell more expensive versions of its smartphone. The figures fell slightly short of Wall Street expectations. Apple, which reported its first ever decline in iPhone sales last year, had returned to growth three months ago and analysts had expected a second straight quarter of improving sales. Revenues in the period were up by $2.3bn to $52.9bn (£40.9bn), while profits increased by $513m to $11bn.
If the bears can break 7223 then we may well be on for a move lower, and the bears will be buoyed by the fact that the 7261 level has remained as resistance. Above this then 7331 is the next level of resistance to look for.
FTSE 100 Outlook and Prediction
In light of the fact that the ASX200 had a pretty bearish Wednesday session, and the FTSE has dropped off the 7261 resistance level we had for yesterday I have gone for a more bearish day today, with a decline to the fib level at 7197. If the bears were able to break below this then we may well be on a path towards 7100. The Dax however was fairly bullish yesterday, and managed to climb above 12500 as reports reckoned that a Macron win still wasn’t fully priced in. Obviously we have the second part of the French election coming up on the 7th.
Resistance wise today we have 7244 initially with the daily pivot then yesterdays high at the 7261 level. Above this a fib pivot at 7292 is probably worth a short as well, as we also have R2 here.
If the bears do go for it, then 7223 is the first support area of note, with 7197 below that where again we have a fib level. S2 is at 7189 as well. The daily chart is still bearish, though the 2 hour is still bullish for the moment. Gold has dropped off a bit recently, testing 1255 currently, and off its recent high at 1300. Cable (GBP/USD rate) is also one to watch in relation to the FTSE, and that has dropped back to 129, having risen fairly strongly yesterday to test 12950. That fall back is helping to support the FTSE at the moment.
So, watching the resistance at 7250ish to start with, with 7292 above that. Support 7197.