Friday ended on a bit of a weak one, not helped by North Korea test firing another missile that landed in Japan’s territorial waters. The FTSE 100 dipped below the 7400 level to a low of 7341 (I had mentioned 7340 in passing in the email as decent looking support but didn’t think it was going to be tested!) but has since fought back a little bit to sit around the 7375 level. Last day of the trading month today so not usually the strongest day, plus we head into August which is traditionally the weakest month. Can they deliver a bull Monday?
Asian raw-material producers advanced after a surge in commodity prices bolstered optimism the global economy can gather momentum. Oil extended last week¹s strongest rally this year.
FTSE 100 Outlook and Prediction
After a weak Friday will we get Bull Monday again? We didn’t last week but the omens look good for a rise towards the 7425 area where there are several resistance levels of note, the main one being resistance on the daily chart. We also have the 2 hour coral line at 7430 which is likely to see some action from the bears.
The bulls have fought back from Fridays low at the 7340 level, and this area is support for today, and we also have a key fib level here, as well as S1 at 7338. The Bianca channels are slightly higher with the 10 day bottom at 7350.
As such I can see a rise towards the 7425 level today, and it will be at this level that things get interesting. Will the bears re appear or are the bulls still in charge and this dip was just another wobble in the uptrend? We are testing the bottom of the daily channels at the moment so only a break of 7320 (10 day Raff) will make things look bearish. There are some definite signs appearing for some weakness to 7200.
However, if the bulls can break above that 7430 level then we should see 7480 and then we can start to think about 7515 and 7580 again.
Morning. Hedged my shorts. A mini 4th could be underway on the daily. This should take us to somewhere around 7475-7500. Thats where the 5th down should start unwinding from. The target for the 5th down is 7200 area.
No time for EWs. When it doesnt work out suddenly it has become a correction or a wave within a wave etc…
Ie it only works in hindsight like most TA. Dont bother brother.
Seems bulls back in control after V shaped bounce off the 7350 ish level…
With the power of th Dow rise this morning I am fully aware expecting 22000 tonight.
So I am long
£/$ still strong despite the FTSE going higher ?
Managed to get a good short on at 7425 this morning 🙂
well done Nick, I missed it and the Dow @ 21905 ….kicking mysel all morning
Be plenty more!
Taken most off at 7385, trailing stop on the rest!
Dax not looking happy, of late lagging the FTSE and DOW
Lagging but looking like better value. I added to longs this morning. If it closes above 12200 will bd looking to add again tomorrow. Initial target 12400.
We’re heading for 7200 once earnings season wraps up.. can’t sustain any rallies and the highs are getting lower and lower. It’s month end today so expect some weakness this afternoon, probably a move to close the gap at 7370 as long as it holds under 7420
Dow seems to be on a mission to screw me!
Price has just broken through my resistance, not by much atm. So, decision looms for me to hold or fold! Depends on whether it can sustain the breakout
Ive got a feeling we are going to see close to 23000 before it comes off the rails
Trump devaluing the Dollar for short term gains for exports.Nowhere else at the moment to gethe a return for money but stocks. It will come off the rails big time but when.
Dow 22000 overnight ??!! WTF?!