Can the bulls build on the bounce | 7632 7655 7681 resistance | 7600 7580 support

Can the bulls build on the bounce | 7632 7655 7681 resistance | 7600 7580 support

FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 30th May 2023

Asian stocks were mostly higher on Tuesday as investors cheered the prospect that the world’s largest economy will avert a major debt default, improving sentiment across most asset classes.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4% early Tuesday, after U.S. stocks were closed on Monday for the Memorial Day holiday. The index is down 1.3% so far this month.

Day after the bank holiday so may well be a little choppy today bit I am looking at a rise and dip to play out today. Up towards the 7655 area once again, to double top with Fridays high and also another test of the daily resistance level there would make sense first thing. A bit of bear Tuesday to then kick in and a drop down to the 7580 area for a test of S2 and the key fib.

The bulls will be keen to build on the strength from Friday which saw a decent bounce across the board and as such trying to push up towards the next daily level of 7680 is in their plan.

The 2h chart is now bullish as you would expect and we have the Hull MA support at 7580 as well, lending more weight to this area. Its also S2 and the key fib, hence thinking that should we drop to here we will see a bounce.

Below 7580 and the bears will be looking to break below that 7555 support level from Friday that held well, as that would allow a drop down to the 7500 round number support. I am not sure that it will get that bearish today, and with positive 2h charts on the FTSE100, Dax40 and S&P500 we should see any dips later on get bought up.

Above the 7680 level then ultimately I think the bulls will be aiming for 7750 on this leg up, possibly even 7777 where we have the daily coral (now red). The daily chart is still bearish though, and we are still in the leg down off the 25ema from the 7790 so that level will be key for the bulls to break.

So for today a rise dip rise may well be the order of the day across the board and a test of the various 2h supports. Keeping a close eye on the 7655 and 7580 levels as the main ones for today for the FTSE, 4225 and 4185/4190 for the S&P500, .

Good luck!

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