Good morning. Interesting day yesterday that seems a hard one to trade as it didn’t quite reach the main levels I wanted. Was all set for a short off the 10 day Raff at 6595 and it stopped at 6589. Typical! For today, support is 6540, whilst yesterdays high at 6590 is the resistance, with the FTSE looking to open at 6565. 6581 is the new top of the 10 Day Bianca, with 6617 above that for the 20 day. I am wondering if we are going to get another leg down shortly – gold rose yesterday for the first time in a while to break above 1200, whilst the S&P tested the 25ema on the daily at 1978 and dipped back.
Asia Overnight from Bloomberg
Asian stocks headed for a two-day gain as information-technology and materials companies advanced, with Rio Tinto Group surging amid optimism for a merger with Glencore Plc.
The MSCI Asia Pacific Index (MXAP) added 0.2 percent to 139.43 as of 9:04 a.m. in Tokyobefore markets open in Hong Kong. The measure added 0.8 percent yesterday. Rio Tinto rose 4.3 percent after people familiar with the matter said Glencore has been laying groundwork to buy the world’s second-biggest miner.
The yen held its biggest advance against the dollar since April as the Bank of Japan is projected to keep record stimulus unchanged today. Both Australia and Indonesia will keep key interest rates on hold at reviews today, according to economists surveyed by Bloomberg. Alcoa Inc. unofficially starts U.S. earnings season tomorrow.
“The yen bounced off lows last seen in 2008 as investors started to ponder the ramifications of the upcoming Bank of Japan policy-setting meeting,” said Tony Farnham, Sydney-based strategist at Patersons Securities Ltd. “Another earnings reporting cycle is just around the corner” in the U.S.
Japan’s Topix index fluctuated as the yen traded at 108.83 per dollar after climbing 0.9 percent yesterday. South Korea’s Kospi index added 0.5 percent. Australia’s S&P/ASX 200 Index slid 0.7 percent and New Zealand’s NZX 50 Index slipped 0.2 percent.
Protests in Hong Kong showed signs of winding down as pro-democracy demonstrators and the government agreed to start formal talks. Futures on the city’s Hang Seng Index and contracts on the Hang Seng China Enterprises Index were little changed in most recent trading.
Futures on the Standard & Poor’s 500 Index lost 0.1 percent. The underlying gauge slipped 0.2 percent yesterday as investors resumed a selloff of small-cap shares and investors awaited the start of reporting season to assess the strength of the U.S. economy.
FTSE Outlook
Today has initial support at the daily pivot 6560, not far below where we are due to open, so I have put an initial push up on my plan for today, to that 6590 area which was yesterdays high, however the top of the 10 day Bianca is 6581 – so 2 resistance levels in this area. If the bulls break that then 6617 is the next one being the 20 day Bianca channel top. I am kind of expecting a bit of a dip though, towards the 6540 area. If that holds that all well and good and then the bulls will build on this rise since Friday. However, if that level breaks then I can see 6500 being hit. Below that we have the bottom of the Bianca channels around 6440!
So, plan is initial climb off the 6560 level (pivot) to 6581/6590 then another leg down to 6540.
Key Levels to Watch
Support so entry levels for a possible long
- 6560 daily pivot
- 6540
- 6517
- 6500
Resistance so entry levels for a possible short
- 6581
- 6590
- 6607
- 6618