Risk off $200bn tariffs | 7545 support | 7707 resistance | Learn to trade analysis signals

7100 now support with 7235 resistance | US China possible trade deal | Bulls are back | Trading analysis

11th July 2018

The FTSE 100 was pretty slow moving yesterday, ahead of earnings season which gets underway this week. However, it might also have been in anticipation of the grenade that Trump just lobbed into the mix again, with further tariff charges on Chinese goods. $200 billion worth of Chinese imports will be hit by tariff increases. As news broke at 9pm all indices dropped, with the FTSE dropping as low as 7613 at one point. Handy just after the US markets closed! The S&P fell from the 2795 level 2765, however, markets have since stabilised and risen a bit. The further tariff charges were actually known about already anyway as its been mooted about this $200bn figure in previous weeks so not like it was that unexpected.

At the WTO meeting in Geneva starting today, the U.S., the European Union, Japan and others are expected to criticize China’s failure to embrace market-based principles and reform its intellectual property and subsidy regimes, which is probably why Trump announced those extra tariffs last night.


FTSE 100 Trading Signals, Forecast and Prediction

With the cat amongst the pigeons this morning we might have a choppy start. I am thinking that we may see a possible rise this morning up to the 7690 resistance area and also go for a bit of a gap close with yesterdays closing price at 7691. The 7691 area is resistance on the 2 hour chart and might well see a fall back down from this area.

I really wouldn’t be surprised if the US rises during their session, ignoring the tariff news and focussing on earnings still which are likely to be positive. A sort of prove to the world that the US is calling the shots scenario. May of course be totally off the mark!

Bloomberg’s Asia Report here

Membership

If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.

Results

I keep a record of all the trades communicated to members via the morning email trade plan and those alerted live. See the results here.

What you get

  • Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
  • Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
  • Telegram Chat room and webinar group membership for discussion and realtime trade updates