FTSE Trading Help | Support 7042, 6995, 6962, 6950, 6940 Resistance 7063, 7067, 7078, 7100, 7120

Good morning. Well I was a little optimistic yesterday thinking we might see 7100 after the open, and in actual fact we had a fairly flat day and a muted start to the week – I think everyone is in awe of Hong Kong which has continued its rise to the highest level since 2008. The long at 7073 netted a few points but cutting and running when it looked weak was the right thing to do. Prices slowly fell away to 7050 and that was about it for the session. Looking at the 10 minute chart there is a quite a nice rising channel with support at 7042 initially.

US & Asia Overnight from Bloomberg
Asia’s benchmark stock gauge climbed toward its highest since May 2008. Singapore’s dollar led gains against the U.S. currency and oil in New York rose a fourth day.

The MSCI Asia Pacific Index rose 0.2 percent by 1:01 p.m. in Tokyo. The Hang Seng China Enterprises Index retreated as much as 2 percent after an eight-day, 23 percent rally. U.S. equity-index futures climbed while the dollar dropped against most major peers. Singapore’s currency strengthened 0.6 percent as the city left monetary policy unchanged. U.S. oil added 0.9 percent.

Hong Kong shares have surged this month on speculation valuations will converge with those of their mainland peers as China’s policy makers expand measures to prop up flagging growth. Data Wednesday is projected to show the world’s second-largest economy expanded at the slowest rate since 2009 last quarter. Indonesia reviews interest rates Tuesday, ahead of reports on euro-area industrial output and U.S. retail sales data.

“China’s real rates and reserve ratios are still very high while the economy is sluggish, so more monetary easing will come and that will be very bullish for equity markets,” said Khiem Do, who helps oversee about $60 billion as Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management Ltd. “There will always be some correction, but a lot of people have missed out on the rally, so there will be buying. Overseas investors are not overweight China yet so that’s another source of funds to come.”

Targets Increased
The Hang Seng Index fell 0.5 percent after its highest close since December 2007 on Monday, while the so-called H-share index pared its drop to 0.3 percent.

Three brokerages boosted forecasts for the Hang Seng Index Monday, with Bocom International Holdings Co. expecting the measure reach to a record 32,000 by June. Credit Suisse Group AG’s year-end projection of 28,000 was beaten yesterday, while Morgan Stanley raised its 12-month target to 30,000 from 26,800.

The Shanghai Composite Index climbed 1 percent. Subscriptions for a new round of initial public offerings will peak by April 15 and to freeze about 2 trillion yuan ($322 billion) of funds, Deutsche Bank AG strategist Yuliang Chang wrote in a note dated yesterday.

Japan’s Topix index added 0.1 percent and South Korea’s Kospi index fluctuated. Australia’s S&P/ASX 200 index retreated 0.1 percent.

U.S. Earnings
The S&P 500 and technology-heavy Nasdaq Composite Index rose to within 0.7 percent of records Monday before retreating as investors awaited earnings this week from JPMorgan Chase & Co. and Johnson & Johnson to Intel Corp.

Profits at U.S. companies are forecast to fall 5.6 percent in the first quarter amid concern over the impact of the strong dollar and lower oil prices. At the same time, the Federal Reserve is looking to raise benchmark borrowing costs for the first time since 2006. The Stoxx Europe 600 Index added 0.2 percent Monday to extend its all-time high.

The yen climbed 0.3 percent to 119.83 per dollar after ending Monday’s session little changed. The currency is weak at the 120 level given its purchasing power parity, said Koichi Hamada, an adviser to Prime Minister Shinzo Abe on monetary policy.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 of its most-traded peers, was little changed Tuesday after its highest close since March 19.

Shale Slump
Singapore’s currency strengthened to S$1.364 per dollar after the city’s central bank said it will “maintain the policy of a modest and gradual appreciation” without adjusting the pace of its currency’s moves. Gross domestic product rose an annualized 1.1 percent in the quarter through March from the preceding period, beating projections for a 0.2 percent gain.

West Texas Intermediate crude traded at $52.40 a barrel in New York. Shale output will decline in May, the Energy Information Administration said, the first time the agency forecast a decline since it began issuing monthly data in 2013. Still, crude inventories probably increased by 3.5 million barrels last week, according to a Bloomberg survey before a separate EIA report on Wednesday.

Nickel for three-month delivery in London rebounded 1 percent from the lowest level in almost two weeks. A strike is scheduled to start Tuesday at BHP Billiton Ltd.’s Cerro Matoso mine in Colombia as talks to resolve a labor dispute failed. BHP’s Australian shares dropped 1.2 percent to the lowest since Jan. 29 in Sydney. [Ref]

FTSE Outlook and Prediction

Initial support is at 7042 today where we have the bottom of a rising 10 minute channel. Resistance is pretty close as we have the pivot at 7063 (IG) and 7067 (live charts). Below the 7042 the next support is 6995, 6962 (bottom of the 10 day Bianca) followed by 6039 where we have the 25ema on the daily. Above the pivot area we have resistance at 7085, 7100 and then 7120 same as yesterday. Looking at the 30minute chart we could be on for bull Tuesday if the 7042 area holds as support as we will get an EMA cross to a bullish state. 10 minute looks good for an initial rise.

I hope the above trading help, levels and thoughts help you today. Good luck!