With the US closed yesterday for Independence Day, the FTSE ended up repeating, pretty much exactly, Monday's action with a slow rise to 7380 then a quick sell off at the end of the day. Overnight it has stayed around the 7360 level, and looks like it will test the 7405 resistance area soon. Above that I am watching 7432 for resistance. Support wise, I am still watching the 7330 level where we have support on the 2 hour chart. Whilst the 2 hour chart looks bullish while 7330 holds, the daily chart looks weaker with the channels heading down.
The ASX 200 dipped initially, then rose back, as geopolitical tensions in the Asia Pacific region continue after North Korea test fired that ICBM missile (though not one seems totally sure if it was or wasn't). Markets in the past have shown a capacity to quickly move beyond periods of tension on the Korean peninsula following short bouts of risk aversion. Political turmoil on the Korean peninsula comes ahead of the G20 summit in Hamburg this week and as the United Nations Security Council prepares to host an emergency meeting Wednesday.
FTSE 100 outlook and prediction
For today I am thinking that we will see that 7405 resistance level that we have had pencilled in all this week. The bulls have tested the 7385 level twice now and a third test is likely to break. There are several resistance levels here so we may well see a turn down from here, but if not then the levels I am watching above this are 7430 and 7470, both of these are worth a short from to see if the price turns there.
Support wise we have the pivot at 7357 to start with, then 7330 below that which is 2 hour support. If that breaks then 7319 is daily support, with a key fib level at 7306 lower down.
