FTSE 100 support and resistance, trading prediction and analysis for 17th July 2023
Support and resistance - Asian shares slipped on Monday as lacklustre Chinese economic data were not as bad as the worst fears, but still stoked market impatience with the lack of major fiscal stimulus from Beijing.
China reported economic growth of 0.8% in the second quarter, above the 0.5% forecasted, while the annual pace slowed more than expected to 6.3%. Industrial output topped expectations with a rise of 4.4%, while retail sales missed by a tick at 3.1%. That followed figures out over the weekend showed China's new home prices were unchanged in June, the weakest result this year.
FTSE 100 support and resistance, trading prediction and analysis
That was a great drop off the 7480 level on Friday and was good to ride most of that short too. We have now dropped to the round number at 7400 and with S1 and the 30m 200ema here the bulls will be keen to defend this level. However, there is the 2h coral at 7385 just below here, together with the key fib, so we may see this slightly lower level get tested and hopefully hold.
If it did then a bounce to the 7435 area where we have the daily pivot and the red 30m coral would fit pretty well, at least to start with today.
The S&P500 bulls will also be keen to get back on the offensive and defend this drop taking place since Friday, and would be looking to defend the 4490 are where we have S1 and the green 2h coral.
Below 7384 though and the bears will be aiming to upset the bull Monday pattern and drive it down to the next daily support level at 7362 - a level that I would definitely like to see hold. It will get fairly bearish if this breaks and 7300 for S3 likely beckons. The Raff channels also continue to head down so the bulls are still on the back foot, despite the climb from 7240 last week.
Interestingly 7360 is also the 50% fib retrace of the move from 7250 to 7480 last week - again this lends weight to this level to hold as support. As such, should we get there it will be worth a long today. I will probably do a manual alert in the trade room if it looks viable at the time.
Resistance wise, above the 7435 daily pivot area then the bulls will be looking to break above that 7480 level we dropped off on Friday, and will likely be aiming for 7504 R2, and possibly R3 at 7527. Above that we still have the next daily resistance level at 7569 with the daily 200ema here.
Good luck today.
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