Ball is in the bulls court must defend the 7380 area to push higher to 7450

14th July 2017

Turned into quite the consolidation day yesterday after the rises on Wednesday, with the bulls managing to defend the 7405 previous resistance level despite three tests. We head into some key news and earning’s today as well so lots keeping their powder dry for the moment. The ASX200 had a bit of a rise and dip session today, and generally Asia extended its best week performance since March. We have inflation data and bank earnings reports out later, the former should again give some clues on rate rises. We also have US retail sales and industrial production figures. All to throw into the mix for another freaky Friday!

We have daily resistance at 7439 to start with then the top of the 20 day Raff at 7450 – can the bulls break this area? If not then I am thinking that we may well get another leg down. If they do then I would still expect that 7650 level we had from a while back.

Stocks in Asia extended their best week since March, as investors await U.S. inflation data and earnings from some of America’s biggest banks.


FTSE 100 Outlook and Prediction

FTSE 100 Prediction Daily Channels
FTSE 100 Prediction Daily Channels

There are a load of resistance level between 7439 and 7465 so I am thinking that we will get a rise to this general area and then see a decline from there. It may be due to the US data coming out, or it may simply be profit taking at the end of a decent week. Things are still not particularly stable, plus the spectre of QE easing and rate rises still looms.

Support wise, the bulls will be defending the 7405 and 7380 level again, and if this lower level breaks then 7320 and lower looks likely.

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21 Comments

  1. Looks like the next downleg is starting. Would be surprised if it managed to retest 7440 now let alone break it higher as we’ve had 2 days of chopping with lower highs in this 7400-40 range. Also after all the corrective activity we’ve had over the last month I’d be surprised the S&P was able to break out to new highs, so at the moment it’s looking like a failed test of 2450 area with more downside to come

    1. Sky high expectations this time though. Basically see one of two things – they miss and we go down, or they beat and they pop higher and then go down. It’s just how people are positioned going into it

    2. US earnings (BST)

      $PNC at 1130
      $WFC at 1235
      $JPM and $C at 1300

      Elsewhere, $WMT +2.2% pre-market after GS upgrade

      1. I think we go to $1.35 now given time.. spx grinding up to new highs which is the hold up but would expect that to reject

  9. How are you fairing Icarus…I’ve added too! Looking strong the Dow…

    Nerves are kicking in!

    1. Doing okay account wise, plenty of points to burn before I start to worry. Can’t imagine this grind going into next week!

      1. Mentally draining. Hence why I generally don’t play short term positions. Anyway we are where we are. Plenty of potential ahead. Need to stay calm and patient

        1. I have fully hedged with longs.i can see Dow hitting 700 tonight and sp500 70.

          Trade safe

          1. Technically the target is infinity if it doesn’t break soon. We all know that can’t happen. For it to go higher it must go lower!

  10. Agreed. I have equal hedged only as I think it will fall hard, but need to protect margin and account.

    To my mind it’s not likely to come down tonight given that everyone had just bought it.

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