Tentative resistance at 7720 but rise to 7800 on the cards | Learn to trade | Analysis

Tentative resistance at 7720 but rise to 7800 on the cards | Learn to trade | Analysis

12th June 2018

Asian stocks traded subdued with participants tentative ahead of the looming FOMC decision and amid a resurfacing of trade concerns. The statement Trump signed with North Korean leader Kim Jong Un committed them both to the “complete denuclearization’’ of the Korean Peninsula, as well as to a new relationship, a peace regime and security guarantees. Today’s big event is the Fed rate news later with a widely expected rise in interest rates. The median estimate now is two more increases this year, which matches the Fed’s own projections back in March. In the UK, Theresa May averted a revolt by pro-European lawmakers in her party, dodging what threatened to be a major political crisis. Some Conservative lawmakers had been pushing for an amendment that would have given Parliament unprecedented powers over the premier’s Brexit strategy. They stood down after May personally intervened to promise them a last-minute compromise.

Today’s news highlights include IEA monthly oil report, UK CPI, US PPI, DoEs, FOMC rate decision and press conference, supply from Italy and Germany


FTSE 100 Trading Signals, Forecast and Prediction

With the drop off the 7770 level yesterday the 2 hour chart has gone bearish and is now showing resistance to start with today at 7720, as such if we get a small rally to that level then it is worth a short there for a run down towards the 7648 support area (there is also support at 7640 that has held well recently). If we do follow that path then it is worth trying a long at that area as well for a run back up. There is still a chance that we push higher on this current leg anyway, towards 7800 or more. The trend is still bullish so certainly no harm in trying a long at that fairly key support.

Should the 7640 level break then we are looking at 7590 as the next key support area, and a level that “should” see a bounce.

Bloomberg’s Asia Report here

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