The bulls held onto the 7300 level yesterday as the 2 hour chart went bullish and provided support there. That said they couldn't really break the 7330 resistance level with any conviction as most markets marched sideways awaiting US China trade developments.
For today, if the bulls can push past the 7330 level then we should see a rise towards the next resistance level at 7363 where we have a key fib and is just above the R2 level for today. Above this the I am thinking that we will see a test of the top of the 10 day Raff channel at 7388, and at that point we may see the bears appear. The sentiment remains bullish while the technicals suggest that we should have a drop down towards the 7200 level. The former is winning the battle for the direction at the moment!
If the bears were to break below the 7297 level which is the 100 Hull MA on the 2 hour chart, then we should see a drop down to the 7266 level where we have the key support fib level. Below that then 7243 looks like it would hold as that would finally be a test of the daily coral and we also have the bottom of the 20 day Raff channel here. Daily support is lower at 7216 and the bottom of the 10 day Raff at 7199 but I am not expecting us to go that low today. Bears seem pretty scarce these days!
Thats said, the S&P is also still due a pull back and anything negative on the trade front will likely see that pull back to that daily support area mentioned yesterday, now at 3061 for today.
The FTSE daily chart remains bullish with the moving average support at 7310 and holding on, despite a few forays below it. The bulls are certainly keen to keep the price above the 7300 level for the moment. Will today be the day they break it? I would still like to see a test of the daily coral now at 7243 and will look to go for a long at that level. Having the bottom of the 20 day Raff here also lends a bit of weight to it as a decent support level.