27th April 2017
Good morning. Apart from the little kick up at the close yesterday to 7300 as the divi hunters came in, it was a fairly lacklustre day. This was despite the tax cut plans announced in the US, which despite sounding great still have to be implemented and paid for. The FTSE 100 missed the support at 7250 and the main resistance level at 7330, and the S&P failed to break 2400, topping at 2398.5. US/North Korea tensions are still simmering away, though the latest rhetoric from the US is for a more diplomatic solution, after the “show of strength” from NK yesterday.
With the FTSE bulls failure to rise above 7300 it looks like we might be on for some downside over the next couple of sessions.
FTSE 100 Outlook and Prediction
I am thinking a bit of a rise and dip day today as it feels like there might be a bit of caution coming in after that rise earlier in the week. I thought the bulls might have managed to push to 7330 by the end yesterday but there were not particularly strong, and gold has climbed back from its low yesterday at 1260, having dropped off the 1267 resistance level we had. Its now back up at 1267. The 2 hour chart has now gone bearish with resistance at 7295, and the Bianca chart has 20 day resistance at 7336 still. The Raff channels are still around the 7320 level as well.
The ASX200 had a bit of a weak bullish day but has hit resistance and dropped off a little bit, and thats the pattern that I think we will follow today as well.
The bears will be keen to break 7240 as that will likely then lead to a test of 7200 and possibly lower.
So, watching 7300 area for resistance, possibly 7330 again, and then 7240 for support.