After a weak Friday will we get Bull Monday again? We didn't last week but the omens look good for a rise towards the 7425 area where there are several resistance levels of note, the main one being resistance on the daily chart. We also have the 2 hour coral line at 7430 which is likely to see some action from the bears.
The bulls have fought back from Friday's low at the 7340 level, and this area is support for today, and we also have a key fib level here, as well as S1 at 7338. The Bianca channels are slightly higher with the 10 day bottom at 7350.
As such I can see arise towards the 7425 level today, and it will be at this level that things get interesting. Will the bears re appear or are the bulls still in charge and this dip was just another wobble in the uptrend? We are testing the bottom of the daily channels at the moment so only a break of 7320 (10 day Raff) will make things look bearish. There are some definite signs appearing for some weakness to 7200.
However, if the bulls can break above that 7430 level then we should see 7480 and then we can start to think about 7515 and 7580 again.
So, watching 7340 area for support and 7425 for resistance today, and generally feeling bullish for the FTSE as a surge in commodity prices during the Asia session bolstered optimism the global economy can gather momentum.
