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Good hold of 7708 with 7790 bulls have to break

Published 18/05/2023, 10:06

A decent performance from the bears yesterdays taking it down from the 7760 to the 7708 target level, whereupon we have seen a bounce. Helped of course by the rise on the S&P500 as a debt ceiling solution looks to be in the wings. 

For today we may well see the bulls continue to build on that and we get a rise towards the 7790 level where we have R2 and the key fib for resistance. The 2h chart remains bearish for the moment though and the 7756 is initial resistance from that. That level has in fact capped it overnight and we also have the 30m 200ema here, so this is the first hurdle that the bulls need to jump to get higher.

Support initially is at the daily pivot at 7736 and we also have the now green 30m coral here, so I would like to see this hold, otherwise a slide down to the 7700 level looks like it will play out. As per yesterday, below that then the key level is still 7680 and the bulls will likely try and defend that quite hard. 

Above 7790 then 7820 is also still the key daily resistance so that is the ultimate level that I am looking for the bulls to get too. They could manage that today with a decent tailwind.

The Raff channels are both heading down still, and we do of course have option expiry tomorrow which will likely see a bit more chop today. If the S&P can consolidate its gains from yesterday then more upside on that, and in turn other markets, will likely play out. It's worth noting that the Raff channels for the S&P and Dax are all still heading up. That should help to see a bit more upside, as it's just the FTSE100 that is the weakest of the three.

Not too much more to say really, looking for a rise today and watching 7790 and 7820 as resistance. 

Good luck today! 

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