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7640 is key resistance with 7667 above

ByFTSEDayTrader Limited
AuthorNick Hilsden
Published 06/06/2023, 12:07
UK100
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US500
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The bears were a bit slow to get going off the 7640 resistance level yesterday and that area remains the line in the sand for the moment. We may well see a bit of a bear Tuesday kick in today as yesterday was pretty flat in the end, despite the bullish fight back from the 7580 level. Interestingly 7575 is showing as support to start with as we have the 2h Hull MA here, and also the 30m 200ema. 

As such, we may well see an early climb from this support level to test the now red 30m coral and daily pivot around the 7606 level. That may well tie in with the S&P500 defending the 4270 2h support as well, for a rise to test the 4290 resistance. 

Yesterday was basically a bit of a retrace of Fridays stellar rise, and as such setting up the next major move. The bulls tried to push on but the 7656 level capped the rise..... funny that! Both the Raff channels are now also declining, on the FTSE100 at least, so will need the S&P500 to help it rise further (Raff channels still heading up on that).

Above the 7610 area then the bulls would be looking to take it to 7640 again and possibly break the 7656 level. We have Jobless data out in the USA on Thursday and could well see dips get bought up ahead of that (but then maybe a sell off if the data disappoints).

Support wise for the FTSE100, 7575 as mentioned then below that a drop down to 7532 looks possible as we have S2 here and also a now green 2h coral support. If we were to drop this low today then a long here looks viable. 

I am also watching the 4299 level on the S&P500 as that was the recent high from yesterday and is the level that the bulls will need to break. 

So, for today keep an eye on 7610 and 7655 as the key resistance levels, 7575 and 7532 as the main supports.

Good luck!

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