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FTSE 100: 7592 7610 7630 Resistance

Published 08/05/2018, 09:11
Updated 14/05/2017, 11:45

Hope you all enjoyed the sunny bank holiday weekend!

The FTSE Futures were pretty sunny yesterday too rising above the 7600 level to test a high of 7630 before dropping back, but all still looks like they want to push higher, certainly early this week.

Last weeks NFP data came in slightly lower than forecast but still saw markets rally, while US markets yesterday consolidated those gains. However, with the FTSE dropping down from the 7630 area, the 2 hour chart is bearish to start with today with resistance at 7592. The bulls will need to push above this level to test the 7630 again, with a rise to 7796 (all time high from January) still possible. Will we just double top there or will 2018 be the year of the 8000 FTSE?

We might have a bit of a cautious start today as we settle back after into the groove after Monday's bank holiday. The 2 hour chart has gone bearish following the drop off 7630 yesterday so we have initial resistance at 7592, though the 30min chart has resistance slightly higher at the daily pivot 7604, and also a red coral trend line at 7610 currently.

The ASX 200 had a bit of a bearish session Tuesday so we may well follow suit as its eyes on the BoE later this week, and also Donald Trump's announcement on the Iran nuclear deal later this afternoon, and if the US remains in the Iran nuclear accord.

Above the 7610 level then I am looking at a test of Monday's out of hours high at 7630, and R1 at 7624 might well see a reaction here if the bulls were able to push that high. Above this then the fib level at 7658 is the next area of note. Need to see if the bulls are quick out the blocks today though and can push higher today, or more likely see a rise tomorrow.

Support wise for today, we have initial support at the Friday close price of 7567, with 30min chart support just below that at the 200ema at 7559. S2 and a key fib level at 7555/7557 should hold any early test as below this the bears will be aiming for a drop down towards the S3 level at 7528. We still have the 25ema on the daily yet to be tested way down at 7397 currently so any major dip will be aiming for that area.

Still cautiously optimistic for the moment as the bulls continue to drive this rally from the 6850 level and they will be keen to push above 7630. For today though we may well see a bit of consolidation and a bit of a pull back unless the bulls very quickly push though 7592.

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