Will we get another bull Monday pattern? Asia and the ASX had a decent day putting in some solid rises across the board, and we closed Friday strongly so the indications are certainly there. I am watching 7420 and 7445 as the key resistance levels for the FTSE 100 for the moment, and it will be interesting to see if the bulls manage to push above 7450. There are some signs that we could well range between 7350 and 7450 for the short term (next couple of days).
Of course, we are still in earning season, and the banks had decent results last week for Q2, so that will have an effect on price moves this week.
The 2 hour chart is bearish with resistance at the 7420 level to start with, though the 10 day channels are now heading up after last weeks push from the bulls. The 10 day Raff channel has resistance at 7501 and support at 7334. If the bears were to break this lower level then I am still thinking that we will see the 7260 area which was pencilled in as support last week.
So, fairly simple plan really, looking for a rise towards the key resistance levels today.
