Last week ended with 7400 holding as support and the bulls putting in a bit of an appearance to close at the top of the range we had for Friday, at 7430. This area and 7445 in particular level looks fairly key for the bulls to start with and they will need to push above this otherwise it looks bearish still and a trip down to below Fridays low of 7396 looks possible.
The daily chart has got a bearish moving average cross over, with resistance at 7465 - and considering that we are not too far away from this after a fairly whimsical bounce on Friday we might see the bears appear here. We are heading towards the traditionally slower summer months and the run from 7100 might start to run out of steam soon.
The levels I am looking at today are initial resistance at the 7445 level and then 7465 above that. Support wise I am looking at 7421 and then 7396 below that. If the bears are able to break this lower support then the path is open for test of the 7350 level, then 7300 and maybe even lower. At the moment it doesn't look particularly strong, despite that rise late on Friday to the 7435 area.
