Fed policy meeting so rise and dip again today watching 7480

26th July 2017

Steady rise yesterday to the 7450 resistance area where the FTSE 100 really just stalled rather than doing an awful lot. We got the rise as expected, but the downside wasn’t so forthcoming, with only a brief dip after the bell down to 7425. The bulls fought back helped by the rise in oil prices and we have remained at 7440 overnight. The top of both Bianca channels are at 7499, and there is daily resistance at 7515 – I am also thinking still that tomorrow or Friday may well see 7550. The Fed start their policy meeting today, and will deliver a rate decision today.


FTSE 100 Outlook and Prediction

I am thinking that today will be similar to yesterday with another leg up towards the next key resistance area at XXXX, then a little dip/hold around there, while we await the Fed. Earnings have been good so far from most companies (but not Alphabet!). Some of the members who are into Elliot Wave analysis have been mentioning that there is a chance that the current rise will be stalling around this current area before a larger decline so that is something to bear in mind.

The bears still need to break the 7400 area and then 7360 to get any meaningful declines, and we have a key fib pivot for support today at 7382 which may well hold on any bearish dip down, However, for this morning it looks fairly positive with a bullish 2 hour chart and the bulls fighting back last night from the 7425 level. Still looks like Monday was a stop hunt with that drop down to 7360 to cut some weak bulls and also trap a few bears.

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23 Comments

  1. Morning all. I am holding ftse and dow shorts. The way charts are setup i am thinking we could head down at open.

  2. The ultimate target for this 4th wave (currently in it) should be in the 520-530 area before we get a decline to the 250 area

  3. Get ready to buy tesla shares after the next market crash. Petrol and diesel vehicles phasing out!

    1. All manufacturers have electric technology and Tesla made theirs available by not protecting their patents. So all this government announcement does is increase pressure on rivals to get more competitive with Tesla. Sell.

      1. For now, agree. Tesla short interest is pretty heavy so it ought to fall soon. My comment was more about buying after a market crash, which is when ftse heads to sub 5000 levels.

      1. Current is 7400. But if you take into account points made using long hedges etc. it would be in the 7450 area

  4. It does look like 7515 area where we got to recently was the end of w2 on daily. So i think we may only head down. Looking for a 250 point drop from 7515 as target to go long.

  5. Another high probability development on the weekly puts 7535 as the top of this retrace taking us down to 200.

  6. Dow short 718…medium weight, will add at 760 if it gets there?

    Gold long 48 (Expecting sharp rise and fall)

    FTSE short, dollar down pound up

    Gl

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