Looking bearish 7350 support 7410 resistance – Trading Help Analysis

13th September 2017

Once again the bulls failed to break the 7440 level yesterday and we got a dip back down to 7385. The bulls defended this with some attempts to hold above 7400 but the picture is looking a bit more bearish now for the short term. The Apple event yesterday saw their price decline, also the Nasdaq. Maybe the queue of people willing to pay a grand for the new iPhone won’t be as long as they think!

The S&P tried to go for 2500 but fell short at 2498 after the bell, while the ASX200 had a bit more of a bearish day today. The big news for the UK yesterday was that inflation hit 2.9%, well above the 2% target, and saw sterling rise as interest rate increases to control inflation are possible. With the pound rising, it knocked the FTSE100 off its stride.


FTSE 100 Outlook and Prediction

FTSE 100 daily channels support and resistance
FTSE 100 daily channels support and resistance

For today I am thinking a quick rise at the bell to above 7400 (it hasn’t sold off majorly overnight) and then a bit of a dip down from there. The bulls have failed to hold above 7400 and break the 7440 resistance level though it still remains that if they do we are looking at 7460 and 7500 resistance.

On the support side, 7350 still looks like decent support so a dip down today to that would look good and if it holds spring us back up for a stronger second half of the week towards 7500.

For today the 2 hour chart has gone bearish after the drop yesterday and is showing resistance at the 7410 level so an early short here should be good. The bottom of both the Bianca channels are between 7340 and 7350 so this area as a target for shorts, plus as a long area looks viable.

We have option expiry on Friday as well as BoE tomorrow – expected to leave policy unchanged but after that inflation report yesterday some will be pushing for a rate increase.

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30 Comments

  1. Closed ydays longs at 80 for a loss…..ouch. Could have been worse I suppose….cables strength is pulling Ftse back I think…

  2. Morning all,

    Been a little while since I have made an appearance here.

    Long @ 7345 See how far we can run up today. Possible hold to extend 400+ if we have a strong second half of the week.

    Bloomberg announcing investors cautious of yesterday’s gains. A rally to resistance @ 4410 possible. Lets see how it plays out.

    1. I think with news surrounding Merkel and Apple suppliers down, I would be cautious going long in the current area on the Dax. See what our friends across the pond bring this afternoon with their reaction to Apples suppliers falling.

    2. Good advice, I don’t really follow the news so thank you (I did hear about Apple though) but the whole sentiment on Dax is half bullish so it may easily turn into bearish. 12487 yesterday was broken so there’s less chance that 12559 will be broken today. I was looking for bearish signals all morning but only had long ones which I ignored.

  3. Hmmm…..the candlemaster remains unconvinced by this technical retrace off 7350, prompted by early top callers on GBD USD. Too much resistance over head to go long here. Awaiting higher probability set-ups.

    1. Agree..7390 support turned resistance. Surprised by some of the moves the last few days, the currency moves are always a bit irrational to me

  4. Choppy waters. I couldnt bring myself to go long gold in pounds today despite attractive candle yesterday. Reason being BoE statements could cause a drop soon. We all know they wont raise rates for years but gold is prone to nasty drops. Dont want to scare you cowboy I like where you went long, the market is just making me neurotic. But at the end of the day, a trade for me has to feel easy. A no brainer with an easy exit. I have to be compelled to play it and with a sense of greed not fear. Right now I feel the fear.

  5. 45 Long closed @ 85

    US waking up with futures negative.

    Jack, Deutsche bank Chief strategist to appear on Bloomberg tv within the next hour which might help with your Dax.

    Theresa May to release another Brexit statement within the next week, as tensions grow with the Brexit deal, one to watch.

    Taken the first seat the bench until US open!

      1. Patience! The rumour of a 5% correction could upset things adding to the stress.
        My feeling with the Dax is it could push a little higher with the parliamentary vote around the corner (as I type this it is!), I’m waiting to see if it breaks this 550-555 before making a move.

        1. I get that and I started shorting 60 but I don’t feel it will be an immediate drop and I am not here to take the big moves, generally I am a short time scalper. I like beautiful rallies which develop naturally. At the moment short pattern for my trade didn’t develop, let’s see what it is tomorrow.

  6. Well GBP USD may have hit a top, if it closes in this area its a classic top. Gold falling fast and I may have to get long stocks above 7400 tomorrow.

  7. Dumped another short. Feel some temperature, I think I will take the rest of day off. Well, it didn’t go how I planned.

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