FTSE 100 live outlook prediction analysis for 11th August 2020
We’ve had a pretty slow start to the week – but things are likely to pick up with employment data later, and Wednesday’s GDP reading. So, in the calm before the storm, here were some of the highlights:
- European shares wavered amid escalating tensions between the US and China, with Wall Street dipping after opening near record highs. China announced it would introduce sanctions against 11 Americans in response to a similar step from Washington over the weekend.
- Cineworld and Clarkson shares popped higher on the FTSE 250, with the former rising after a US judge struck down a rule banning movie studios from owning cinemas. Clarkson posted solid results and restored its dividend.
- Shares in Next Digital, the media group owned be pro-democracy campaigner Jimmy Lai, popped higher after he was arrested as part of a continued crackdown upon dissenting voices in Hong Kong.
- McDonald’s launched legal action against Steve Easterbrook, its former executive, saying he should not have been given severance pay because he “concealed evidence and lied about his wrongdoing”.
Tit For Tat
China says it will sanction 11 Americans in retaliation for similar measures imposed by the U.S. on Friday, but the list doesn’t include any members of the Trump administration. Those sanctioned include Senators Marco Rubio, Ted Cruz, Tom Cotton and Pat Toomey, among others. “In response to the U.S.’s wrong behaviors, China has decided to impose sanctions on those individuals who behaved badly on Hong Kong-related issues,” Chinese Foreign Ministry spokesman Zhao Lijian said. He did not specify what the sanctions would entail. The U.S. said Friday that it was placing sanctions on 11 Chinese officials and their allies in Hong Kong, including the city’s Chief Executive Carrie Lam, over their roles in curtailing political freedoms there. Meanwhile, Citigroup and Standard Chartered are stepping up scrutiny of banking clients in the former British colony, in an attempt to avoid violating U.S. sanctions on those officials. Citigroup is already taking steps to suspend accounts linked to some of the targeted individuals, one person familiar with the matter said.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Asian stocks rose the most in a week on Tuesday after a drop in coronavirus hospitalizations in some U.S. states, even as global cases topped 20 million. The dollar slipped. Japanese and Hong Kong equities rose more than 2%. Shares advanced in Australia and South Korea. S&P 500 futures climbed, putting the benchmark on course to approach its all-time high from February. The tech-heavy Nasdaq 100 lost ground. Yields on 10-year Treasuries hovered near two-week highs.
Markets are taking some comfort after New York, California and Texas reported falling hospitalizations. Chinese data underscoring a recovery in the nation’s economy also underpinned sentiment. Still, while it took six months after the virus first surfaced in China to reach 10 million infections, the spread has steadily accelerated, doubling in six weeks.
Bit of a slow one for most of yesterdays session after the initial rise and dip from 6100, and overnight we have slowly risen back towards that 6100 level. We still have the daily resistance at the 6115 level for initial resistance this morning, and should we get a drop off this then we could see the pivot tested at 6065. We also have the 2 hour moving average here that we have generally held since yesterday morning. 6050 was also yesterdays closing price so we may well see the bears attempt a gap close with that level.
I have plotted the arrows to bounce slightly higher as we have some support at the 6080 level to start with as well, so bear this in mind. The S&P still looks like it wants to rise toward the 3399 level, though may well fall just short. The pattern in play on that looks like a bit more upside to come, then a pull back and then a further rise towards the top of the Raff channels, around 3450 at the moment.
For the FTSE 100 we look to be able to make 6158 pretty easily today if the bulls can break 6115. Above 6158 then the top of the Raffs and also the daily coral (now red) are the next major resistance area, at the 6225 area. As such, should we see this level soon then a short here looks to be worth taking and holding for a few sessions at least. Might well tie in with the S&P at 3399 as well.
Support wise, if the bears break the 6050 level then the fib and S1 are at 6028 and thats the next main support. Below that then the 5988 S2 and daily support at 5980 is the next key level to watch. Below that then 5924 would probable get tested and may well see a bounce. For the moment the bulls will be keen to keep the price above the 6000 level, and we also have a large dividend this week of 22.68 which will help to underpin some strength today/tomorrow.
Jobs data just out from the ONS shows 730,000 jobs have been lost since March, based on HMRC’s pay as you earn data. The figures exclude the self-employed. The unemployment rate held steady at 3.9pc.
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