Earning season this week | 7420 support still | Can the bulls charge again

24th July 2017

Ended up being a bit hasty closing those shorts on the FTSE 100 and S&P on Friday as we had a decent dip down in the end for most of the session. General end of week weakness saw the FTSE fail to hold onto the 7500 level, but also at the same time, a drop back creates a decent spring board for a push up this week towards 7550 or slightly more. Will we have bull Monday yet again today? Was a shame that it bounced just above the 7421 long order (low was 7432) but that still looks decent support for today too.

The 2 hour chart is showing some resistance at the XXXX level, and the 30min chart has resistance slightly below that at XXXX, so the bulls will be keen to break these areas early on today. Of course, we are still in earnings season and there are a lot out this week, including big hitters such as Amazon, Facebook, GSK, Shell etc. These results will move the markets around this week so bear that in mind.

Stocks in Asia dropped and the yen rose for a fifth day as traders showed caution at the start of a week packed with earnings results and a Federal Reserve interest-rate decision. Oil remained below $46 a barrel before an OPEC meeting.


FTSE 100 Outlook and Prediction

Daily FTSE 100 Support Resistance Channels
Daily FTSE 100 Support Resistance Channels

For today I am fancying “buying the dip” and am looking at support at 7420, however (there is always a however isn’t there!) I am also looking at resistance at XXXX. This week it will all be earnings driven, but I am am expecting to see a rise this week towards the XXXX level. Probably later in the week. The momentum is still bullish for the moment, and as long at the XXXX support area holds then we should see a push up.

Support wise, if the bears were to get the FTSE 100 below the 10 day Raff which is at 7398 then we could well be on for a trip down to XXXX and maybe a bit below to test the XXXX, however, 7420 still looks pretty decent support on the daily so I think the bulls will defend that. Earnings have been pretty robust so far, and that may well continue, though Caterpillar will be one to watch – a slow down in construction filters through to that and that drags the US markets down. With Trumps planned construction boom though, we may see an uptick in earnings in anticipation….. Maybe!

Anyway, back to the FTSE and thats the key areas I am looking at for today, resistance at XXXX and support at 7420.

23 Comments

  1. Must drop below 7300 for me to even think about longs, same for dax, test of 12000 looks inevitable.

  2. Looks like the move to 7100s is back on. Weekly chart is looking quite bearish now with the lower high. 7300 obvious place for a bounce but could be short lived

        1. Hey Jack, I am in a full-time job so don’t have to worry. I have plenty of distractions at office though!

  3. Not much bull Monday so far for the FTSE. Had a DAX long at 12160 to 12200 which fared a lot better!

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