Bit of a flat day yesterday as the FTSE 100 failed to break the 7550 level and dropped down to the 7523 support area late in the day. The bulls didn't do much there though managing a rise to 7535 before giving up. Gold fared better with a rise off the 1262 support area, reaching just below 1268 at one point. The Dax dropped sharply though, breaking through the support and testing 13050 before climbing back, then falling again. You can tell the market is getting ready for its Christmas break!
For today I am expecting it to be treated like the last trading day and may well be fairly flat. I am watching the 7492 level as support as we have S1 here, its just below the fib level and the bulls will be keen to close the FTSE this week above 7500 if possible. We may even get a rise towards 7600 between Christmas and New Year on low volume.
The initial support is 7512 where we have the 200ema on the 30min chart, and lower support is at 7453 where we have the 25ema on the daily chart.
The Australian market was fairly flat today and I am expecting us to be the same. The US markets didn't show much enthusiasm yesterday for the tax bill passing through the House (though it does need a re-vote) and gold actually saw a fairly decent rise. All of which is a bit risk off....
If the bulls can break above the 7531 level today then we should see 7550, then possibly the fib level at 7578. They failed to push above 7550 yesterday so that sets ups double top here for today - might be a big ask to push through that. If they did and also really go for it then a rise to 7592 is possible still - we have R3 here and tantalisingly close to the 7600 round number.
So basically, looking at buying the dip down to 7492 level, though if this breaks then a long at 7455 is worth a go.