Resistance 6755, 6775; Support 6745 6715

Good morning. I was a tad early at 6730 yesterday but am still holding that and the 6716 long as well. I honestly didn’t expect to see 6715 but there you go, the bears drove it right down in the end having seen the rubbish US GDP figure. Having now bounced from that area the charts are saying that it needs to break 6755 to reach 6775, which would be good. As such I’m taking some profit at this 6755 area.

The Dubai stock market bounced back yesterday, gaining 6.1% having had a 3 day slump and entering a bear market. Will the US and FTSE bounce back up now they have tested their lows at 1945 and 6715?

Asia Overnight from Bloomberg
Asian stocks rose, with the regional benchmark index headed for its biggest gain this week, amid optimism theU.S. economy is emerging from a worse-than-estimated contraction last quarter.

The MSCI Asia Pacific Index (MXAP) gained 0.6 percent to 145.11 as of 12:53 p.m. in Tokyo, with all of its 10 industry groups advancing. U.S. stocks rose for the first time in three days as investors watch data for signs of a recovery after a report yesterday showed the economy shrank the most in five years last quarter. Economists predict a gauge of personal spending by Americans today will show gains.

“The U.S. market didn’t react negatively to the revised GDP data, which bodes well for markets here,” said Masaaki Yamaguchi, equity market strategist at Nomura Holdings Inc., Japan’s biggest brokerage by market value. “Asian markets are doing OK after getting a correction yesterday.”

Futures
Futures on the Standard & Poor’s 500 Index were little changed today. The stock measure gained 0.5 percent yesterday even as a report showed that U.S. gross domestic product shrank 2.9 percent in the first quarter. Orders for business equipment climbed in May, a sign that corporate investment is helping revive the economy after slumping at the start of the year.

Americans returned to stores and car dealerships, companies placed more orders for equipment and manufacturing picked up as temperatures warmed, indicating the early-year setback was temporary. Combined with more job gains, such data underscore the view of Federal Reserve policy makers that the economy is improving and is in less need of monetary stimulus.

FTSE Outlook

FTSE Prediction
FTSE Prediction

So, as mentioned Im still long currently, looking to take some profit at 6755ish and 6775. With the US rebounding off the lows then that original target of 6795 is still possible. Those are my resistance levels for today. We are just slightly above the daily pivot at 6745 so if the bulls do put in a good performance (above the pivot is bullish, though being so close its pretty weak) then we could be testing the top of the daily Bianca channels again before too long. Support wise, after the pivot, is the 6715 level being yesterdays low, and also the bottom of the Bianca channels today. If 6715 were to break then the next support is 6670.

131 Comments

  4. Thanks Nick
    Interesting point you make about the closer to pivot the open is the weaker it is.

  5. I closed my long and have gone short as it’s been struggling to go above pivot for 1 hour.

  6. Belly still got my 2 longs from yesterday at 37 and 54 with today’s long at 43.
    You in yet?

  7. Just gone long at 37. May be a bad move but can’t be any worse than yesterday. (Famous last words)

  10. lol. I told you FTSE is going to wipe out comfortable positions. I hope it go to hell. If instead, bounces as it usually do, taking me out in the process… I will take a flight to the Citi and deal with the citi boys 😀

  11. IHS very weak at this moment. Fail to broke the neckline. It was at 6755 instead of 6746

  14. Dimps made a good call, 10 coming for a bounce or is this going for a double bottom at 6700

  15. I just hope that the bad data yesterday was not buoyed from POMO. Because we may have trouble today, unless big good data from yankees with CPI

  18. IF this turns out to be good, we may have a consolidation day in FTSE, where the others resume there uptrend. FTSE because of lagging, will only resume uptrend tomorrow

  22. My long stopped out for profit after that bounce. I’ve gone short but not sure if it’s going to topple over or not

  23. For nowbelly maybe but look at 4hr and daily context up line of recent lows this is defo going to 6700 before bounce up.

  25. Closed my short at 6729. Can’t check the market for while now. Could have let it run with stop and limit but learned a bad lesson yesterday. GL.

  27. Belly deliberating what to do will see how close we get to pivot by lunch. Don’t want o hold 3 longs that low so looking to close some.

  31. Just closed all my longs at 43 that is
    37- made 6 points
    43- evens
    54- lost 11 points

  36. Should have taken 43 short might climb back up for US open.
    Like the idea of orders as it takes the stress out of it

  40. Data in line and better than last month but worse than what some expected. Could blame on those guys who seek paradise. And revised numbers could hit those numbers they want

  48. I am short. As soon as you said it looked like it was going over it spiked. About 10 minutes after I wrote that it then dropped

  50. Closed at 6701 that’s the quickest 25 points I have made…!!!
    Looking for the long now

  59. No intentionally. I was placing an order for it to pick up on its way past but someone started talking to me and when I finished placing it had gone past

  63. Hahaha Belly same happened to me just turned back on to find massive bounce already happened.
    Can’t win them all
    Need to look for an entry now for ride up to .6810 then.

  71. X2 I am more pleased I managed to get out of my longs with only 5 points down.
    I reckon we could see 6718 again to jump on ride north.
    Belly not today but I reckon 6810 by end of next week

  72. FTSE will want to close with a hammer so drop back will probably come after close

  75. Hats off for you guys that short so easy and after saying FTSE at 6800 in a few days 😀

    1. What do you do when you get into a losing trade? Cannot believe you never get into a losing trade! I can’t get into a winning one, mate 🙂
      Do you hold wast losing positions, it could go gross sometimes. You should cut losses somehow. How do you do that?

      1. 20% of your trades should give you 80% of your profits so, statistically your money management should be good enough to allow 80% of your trades to lose.

    1. mickster.
      I am short with DOW at 16782. Lower lows on 4H and big bearish engulfing. Whta’s your analysis?

        1. I had a awful first trade today though…Went long ftse at 25 just before it dropped to 00 got out at 05 so lost 20 points in 5 minutes…would have held but I only set a 20 points stop loss so got stopped out.

  84. FTSE’s emerging downturn is quite evident now I think in the weekly timeframe – supporting Javed’s long-held position! 6600 within 4 weeks from now looks doable. Beyond that, a breakout below the July 01/13 ϵ-channel (i.e. the standard error channel taken from July 01 2013. The starting points of channels hugely influence their gradients. 🙂 ) would likely take the index substantially below that level. Notwithstanding that, I bought GWP the other day – that’s up > 6% today. 😀

    FTSE weekly:
    http://i1348.photobucket.com/albums/p736/jmca01/FTSE100DFB_zps4e463785.png

  90. Thanks Jim! Owe you one mate.
    What a day! Although not really all that volatile but looks it relative to the volatilitu these past two months.
    Tested 6700 which I was looking for the close tomorrow. Think have to maintain a negative bias for now.

  98. Cheers guys. Ok because I was driving I moved stop into profit now that one’s closed. What’s next guys?

  99. Went long again. Stops in profit again. See what happens. Dimp, Senu are 6 our trading yet?

  101. Don’t know what autocorrect did there to get 6 our. It was supposed to read. Are you guys trading yet

  102. Where’s your stop dimp? cos I have a feeling this is going to go a bit further down before it goes back up

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