30th April 2019
The bulls defended the 7400 level again yesterday and we managed to reach the resistance level at 7452 over the course of the session with a slow rise. We remain in that 7400 to 7460 range for the moment, with the levels mentioned yesterday still valid either side of this – 7385 and 7475. The 2 hour chart has returned to being bullish with support at 7426 for today.
UK PM Theresa May is reportedly facing a grassroot vote demanding her resignation while cross party talks are said to have been better.
Brent crude, the global benchmark, edged off its six-month high at a day low of $71.06 per barrel after President Trump demanded that producer club Opec raised output to soften the impact of US sanctions against Iran.
Markets Open
Asian stocks were weak Tuesday ahead of key China data that will provide clues on global economic growth. U.S. stocks hit another record high on Monday, but pared gains ahead of Alphabet’s report. Hang Seng and Nikkei futures are also pointing to a higher open. Treasury yields rose after a large five-year block sale. Most G-10 currencies gained versus the dollar; the yen declined. Crude rebounded in a volatile session amid worries over disruptions to Iranian oil, while gold fell. And a reminder: Japanese markets are closed for the week.
Warning Signs for China Stocks
Investors are running out of reasons to chase the bull market in Chinese stocks. After adding as much as $2.5 trillion to share values and outpacing gains everywhere else in the world, the rally in China is starting to look tired. Headwinds include an uninspiring earnings season, as well as the likelihood that Beijing will pursue a less aggressive stimulus policy than anticipated. Talks with the U.S. on trade also resume this week.
Google Parent Earnings Disappoint
Alphabet’s first-quarter revenue missed, sparking concern advertisers are shifting some spending from Google to digital rivals. Sales came in at $29.5 billion, excluding payments to distribution partners. Wall Street was looking for $30.04 billion. Shares fell more than 7 percent in late trading.
Earnings today
Apple, Amgen, Arconic, Pfizer, McDonalds, Airbus, BP
FTSE 100 Trading Signals, Forecast and Prediction
For today I am looking at new support from the 2 hour chart at 7427 to start with. Overnight we have remained at the 7435/50 area . Gold has risen bit overnight and we had a weak Asian session, and the ASX200 also dropped, and therefore I am thinking an initial dip this morning. If the bears were to break the 7427 support area then we have the 7400 area still as support that has held well so far (though the more it is tested the more likely it is to break) and then the fairly key looking 7385 below that.
If the bulls were to push on today and break the 7475 resistance level then I am expecting us to climb to the 7530 area where we have some key daily resistance. With R1 and a daily resistance at 7475 I do think that we will see a reaction here though so I have put a short in the trade plan at this level.
The rise yesterday was a bit slow and steady as we continue to consolidate, and you can see the past three daily candles have long tails on them – which shows some buying pressure for the moment, albeit weak. Earnings continue today, with more out after the bell, and then we also have US employment data out on Friday which will be closely watched (NFP and unemployment rate).
So, expecting a bit of a dip and rise initially today, and then again watching to see what the US does later. The results last night saw the S&P drop off from the 2950 level – it will need to break above 2940 sharpish otherwise the 2 hour chart is getting a bit bearish.
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