Rise to 7440 area today but looking more bearish now | Amazon misses

28th July 2017
Interesting day yesterday as the bears started to sharpen their claws. The bulls failed to break the 7460 level on the FTSE as jitters started across the world. The evening session saw a bit more bearishness as Amazon earnings missed and US shares fell. Cable dipped back a little bit from above 131 so the FTSE wasn’t quite as bearish as it might otherwise have been.

So onto another Freaky Friday. The 2 hour chart has gone bearish with resistance at 7434, while the bottom of the 2 Bianca channels are at 7399 and 7393. If the bears break these then I can see us going to 7340 today. If they hold then above 7435 we have the 7515 level still as resistance – did think we would see 7550 at the back end of this week but the tech sell off and weakness yesterday in the US might have scuppered that!


FTSE 100 Outlook and Prediction

Daily FTSE 100 Support Resistance Channels
Daily FTSE 100 Support Resistance Channels

For today we may well see the weakness from the US and Asia filter through to us as well. There is resistance on the 2 hour chart at the 7440 level now and we may well see an initial climb to there as the 7400 holds. If the bears break 7393 then I am expecting a test of 7375 and maybe lower – 7340 is a possibility where we have S3 for today.

If the bulls were to break the 7440 level then I am watching 7475 as the next key resistance area, with the 7515 previous high above that. I am not sure that the bulls will be strong enough to reach for 7550 today – yesterdays weakness scuppered their chances of that test today I think but never say never!

The ASX200 had a weak session – dropping down to S3 and then bumbling along there.

To start the day we do have a positive RSI divergence on the 30min, and coupled with the bottom of the Bianca channels at this level then an initial bounce looks likely, but probably short lived. Shorting the rallies feels a safer play today but do exercise some caution as Fridays are often strange!

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25 Comments

    1. Looking more bearish today. Wanted that opening spike to 7435 but was obviously just too hopeful!

        1. Had a shorting level at 7434 and a long level at 7340 today. Both missed, the latter by 2!

  1. Good to see the fall in FTSE. Im awaiting the next buying opportunity. Would expect to see strong support at 7300 but wont be rushing in . Still holding a long dax position which despite unrelenting euro strength is holding up reasonably well and may also bounce over next few days. As I am holding dax position in euros I am giving myself a little more leeway here.

  2. Euro strength probably better expressed as dollar weakness, as Trumps presidency lurches from one mess to the next expect that trend to continue. Will put a floor under US stocks for a while. Good for gold. Maybe stocks too over next few months.

    1. ..whats your expectations for the Dow icarus ??
      It feels like standing in front of a train at the moment

      1. Well dow certainly is notorious with giving the impression it wil conitnue to march ahead. Its been hitting a key resistance line for weeks and i really need it to breakout towards 375 area before going for a double top. I feel the top is near or has been attained. Mind you i have been saying that for the last 500 or so points! I genuinely believe it is due a fall due to the severe divergences it is deceloping. I see the eventual target around 19000

  3. Roltrader..,

    I would add some long hedges…2:1 if your margin is getting tight.

    Icarus you must be in the hole, I’m
    Guessing your hedged though!

    There is no guarantee the Dow will fall before it hits 22, 25 or even a lot higher.

    It’s so manipulated that good old fashioned tech analysis isn’t reliable. You can apply statistics to corruption. Just my opinion ,

    Have a good w/e

    1. Thank you gentlemen, its not too serious. Had some poor days trading the Dow but I suppose its my fault trading against the trend. Have a good weekend and lets hope for some bearish action next week

    2. Yeah i am getting nervous but ftse is helping put some perspective for the dow. I am prepared to wait.

  4. Closed my 84 from a week ago for 25 and stupidly went in at 64. FOMO. ANSTEL did you close mate

  5. With the Koreans causing concern can see Dow bombing on Monday before buying back through the next few days.

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