Bear Tuesday – 7280 support 7335 resistance – Trading Help

26th September 2017

That was a nice rise from the 7275 order level on the FTSE yesterday, but the bulls failed to hold above 7300 after the North Koreans poked the tiger again by saying they will shoot down any US planes they can see. Gold rose sharply (good move banking that short when we did!), and is now back above 1310.

Meanwhile the FTSE also recovered, helped by a surging oil price, while the S&P stayed below the 2500 level. Janet Yellen delivers a speech today with traders looking for rate clues again, as policy makers continue to disagree on whether to raise U.S. interest rates again this year.


FTSE 100 Outlook and Prediction

FTSE 100 daily channels support and resistance
FTSE 100 daily channels support and resistance

For today I think we might get an initial move up, but I am positioning for a bear Tuesday by shorting at the resistance level at 7335. I have put in the trade plan two shorts – you can either treat them as 2 separate trades with tight stops or if you agree with my analysis, enter at both levels and fade in shorts – will give an entry around the 7344 level between the 2 of them. Hope that makes sense! The reason for this is that 7335 resistance looks good, but there’s also decent resistance fairly close at 7351 – I don’t think it will get this high today but you never know.

So, that’s what I am thinking, a rise and dip. if the bulls were to break above the 7351 level then the 7380 to 7390 area is the next area of note. We have the top of the Raff channels around here as well as the daily coral. Would be worth a short around 7380 if it were to get this high (Yellen might really talk it up for example). We also have Carney talking on Thursday so I think the rise to this area is more likely Thursday but we shall see – its a level of note.

Support wise for today, the bulls will be keen to hold the 7288 level and protect yesterdays low at 7273 as well. The 2 hour coral is at this level and if the bears were to break this then a trip down towards 7200 looks pretty likely – 7212 being the key price. There is a fib level at 7255 but not sure that will be strong enough to arrest some concerted selling (famous last words).

So, feeling a bit more bearish for today and looking to position as a seller.

Membership

Want more detailed analysis for FTSE 100, DAX, Gold and S&P? 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

17 Comments

  1. Holding long and stop repositioned at 7240. .short term trend is up. Hoping to see another higher low form atound 7280 but its no more than hope. A test and fail atound 7310 may well see me bail.

  2. No change to my overall view that we’re topping out around here. Would need to take out Friday’s high to change it. Tomorrow is the day they unveil the tax plan so probably will trade sideways until then

  3. The initial peak of the rally on cable was on the 15th it’s the 26th now and it’s showing a little bit of weakness……watching this with interest.

  4. Why do you always write a “Bear Tuesday”? It is not a cliche. Something happened long time ago it doesn’t mean it will continue happening all the time. It wasn’t “Bear” at all today.

    1. Market cliches – Bull Monday, Bear Tuesday, Turnaround Thursday, some truth in them but not trading strategies

        1. It’s not a set thing that happens all the time but it’s true that there’s been a pattern all summer. I’ve not analysed the numbers but does feel like Mondays have been stronger than average since FTSE topped in June. Feels like there’s been a weekly pattern of up to start the week, retest the highs on Tuesday, down Wednesday or Thursday then begin bouncing on Friday (which sets it up for a Monday rally). Overall the markets not going anywhere. This pattern isn’t going to last forever and it’s not happening every week.. but let’s say it’s on 7/10 times.. that means it needs to be considered

          1. Exactly, we are in a sideways market and that’s the pattern. Trade it like hell till it stops working. Range is now 7200 to 7350. Was 7300 to 7450.

          1. A, so it was your invention after all. I think it is a good overall idea. It did work most of the summer as Mcgcapital mentioned.

      1. Yes, it was a great fall from 310 which actually justified a bear condition and brought Dax to pivot. But I am taking longs today, so far profitable: Dow 22343 for +10, now Dax for +14.

Comments are closed.