FTSE 100 live outlook prediction analysis for 12th February 2020
The FTSE 100 ended the day up 0.71pc, its gains slightly underperforming European markets more widely amid slight pressure from a rising pound. Sterling eked out slight gains during the day – after dropping to its lowest level since November shortly after City traders reached their desks, it pulled back a little during the session, but remains on a sustained downwards trajectory.
- European shares touch new record highs before pulling back slightly
- UK economy was stagnant in fourth quarter of 2019
- US stocks shrug off coronavirus worries to finish at fresh records
Germany’s top stock index closed at a record high on Tuesday, with US indices also touching their highest-ever levels as investors shrugged off the spread of China’s deadline COVID-19 coronavirus outbreak. The DAX index closed at 13,650.88, having touched intraday highs of 13,668.43 earlier in the session, while the Dow Jones Industrial Average and S&P 500 both opened at record highs. The FTSE 100 closed up 0.71pc to 7,499.44
Federal Reserve Chairman Jerome Powell is keeping a close eye on the deadly outbreak of the coronavirus — which has now been officially named Covid-19. “In particular, we are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy,” Powell said in remarks before U.S. lawmakers Tuesday, though he stopped short of saying the outbreak had changed the Fed’s baseline outlook for the U.S. economy, or the expectation among many members of the Federal Open Market Committee that rates will remain on hold this year. U.S. equities climbed as investors digested the latest views from the Fed chair and Treasuries slipped. “The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market and inflation returning to the committee’s symmetric 2% objective,” Powell said. “As long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy will likely remain appropriate.”
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
We had a great drop off the 7530 level yesterday but the bulls are not giving up just yet and we may well see a push higher today. If they can break above the 7534 recent high then we should get a test of the fib at 7553, and also possibly a bit higher at 7568 where we have R2. Above this there is daily resistance at 7588 and then a possible test of the 20 day Raff channel top at 7625. Do they have enough power to really push on today though? The S&P may peg them back a bit, as would a rise in cable back towards the 130 level.
The S&P managed to get to the 3375 level and dropped off but again the bulls bought the slight dip and it has retraced a bit of that fall. There is still a chance that it pushes up towards the 3400 level where we have the top of the 20 day Raff channel. More new record highs?
The FTSE has support initially at 7500 with the daily pivot here and also the moving average on the 2 hour. A break of this level will probably drop down through yesterday’s low at 7490, to go on to test the 7450 support level, though we do have the 200ema on the 30min also at 7480 which is worth keeping an eye on.
It’s not such a clear picture this morning but there is a case for a pull back on indices and a rise in gold still. The daily coral is at 7566 as well and levelling off, so a test of this and a stall here would also make sense. For today though I am thinking that the bulls will be keen to push a bit higher still, and try and break through that 7534 resistance level. For the moment the 2 hour chart is bullish and that 7500 support level still looks decent. The 10 day Raff channel is also now starting to head back up so I wouldn’t rule out a rise towards the 7625 level either!
So for today, not overly clear but looking at 7568 7605 as resistance, 7500 7452 as support.
IC Markets – offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership and Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and webinar group membership for discussion and realtime trade updates