Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

FTSE: 7340 7320 Support | 7385, 7430 Resistance

Published 07/12/2017, 08:54
Updated 14/05/2017, 11:45

Bit of a mixed bag yesterday as the markets recovered from their lows, but all three - Dax, S&P, FTSE - dipped below their key support levels for the day. Oil tumbled the most in two months, while the dollar strengthened amid a broad risk-off mood yesterday.

For the S&P it was the fourth loss in a row, the longest slump since March. The FTSE managed a slow drift back to the 7370 resistance area, which is failed to break, while the Dax managed to limp past the 13000 level. Talking of 13000 levels, Bitcoin managed to break 13K also yesterday and is now above 14000 already!

For today I am thinking that the bulls might try and build on the bounce that we are in from the 7280 support level. However the 7375 resistance level is still in play, together with a fib level for today at 7386. We also dropped off 7370 yesterday so the bulls will be keen to push above this level, but can they make it stick? If they are able to and we break 7390 which is the top of the 10day Raff channel then the 7433 level is the next hurdle - the top of the 20 day Raff channel is here. With other markets being fairly lacklustre and a general risk off mood at the moment, it might just be another slow drift up.

On the flip side, there is support at the 7340 level from a few things as you can see on the list below, with 7320 support on the 2 hour below this. Worth a long here if it was to get that low this morning. Gold has dropped off again, failing to break the 1300 level so we may see a bit of a move into equities as a result (though they are not as correlated as they used to be).

Meanwhile the Brexit negotiations continue to be deadlocked, and without a deal. Mrs May’s own MPs warned her she could be toppled “within weeks” if she comes back from Brussels next week without an agreement that trade talks can begin.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.