FTSE 100 live outlook prediction analysis for 13th October 2020
The FTSE 100 fell close to the day’s lows in the closing minutes, but more broadly it basically just cruised along flat. US shares continued to outperform as the rest of Europe grabs moderate gains. The S&P managed to reach 3550 before a small drop back.
The Bank of England has asked UK lenders for information about their readiness for the possibility of negative or zero interest rates, raising the prospect of an unprecedented move as the recovery begins to slow.
Bosses in the night-time sector are set to mount a legal challenge against the Government’s “catastrophic” local lockdown plans, as pubs, bars and restaurants fear for their survival. This has also followed on from Boris officially annoying the three tier future for the UK.
Markets Lift
Asian stocks are poised for a firmer open Tuesday after a surge in technology stocks led U.S. gains. The Chinese yuan extended its decline following steps to curtail its rally. Futures indicated more modest gains in Japan, Australia and Hong Kong than on Wall Street where technology leaders including Amazon.com, Apple and Twitter fuelled the rally. The S&P 500 extended gains into a fourth day and the Nasdaq 100 posted its biggest advance since April after surging as much as 4.1%. The yen advanced as the dollar put in a mixed performance against its Group-of-10 peers. The Treasury market was closed for a U.S. holiday. Elsewhere, oil slumped with workers in the U.S. Gulf heading back following Hurricane Delta’s landfall and Libya taking a major step toward reopening its biggest field.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
U.S. futures slipped and Asian stocks were mixed Tuesday as investors weighed a potential setback on progress toward a coronavirus vaccine against an overnight surge in technology shares. The dollar and Treasuries advanced.
S&P 500 contracts retreated after a report that Johnson & Johnson’s Covid-19 vaccine study has been paused due to an unexplained illness in a participant. Stocks remained higher in Australia, fluctuated in Japan and dipped in South Korea and China. Earlier, the S&P 500 closed higher for a fourth day and technology leaders including Amazon.com Inc., Apple Inc. and Twitter Inc. helped the Nasdaq 100 to its biggest advance since April.
Slow and steady on the FTSE yesterday as the S&P continued its October rally. Once 3500 was broken it managed 3550 fairly easily, and still looks to be on track to push higher. The top of the 20day Raff channel for today is at 3581 and if the bulls can defend the pivot today at 3520 then we may well see a further rise towards that level – the stimulus measures certainly helping at the moment.
For the FTSE, we are just about holding above the 6000 level and could still be on for a test of the daily resistance level at 6045 though we have twice dropped off just below this. If we were to break above it today then I am looking at the 6063 area as resistance initially as we have R2 and the key fib here.The proviso is that the bulls break the 2 hour resistance at 6030 though, as with the fairly lacklustre FTSE performance yesterday the 2 hour chart has gone bearish. Assuming they do then we should see a bit more upside today. Ultimately I am thinking that we may well rise towards the 6095 daily resistance level and with the top of the 20 day Raff channel for the FTSE at 6106, we may well see this area soon. Could tie in with the S&P rising to the 3580 area too.
Above the 6106 level then then 6155 is the top of the 10 day Raff channel for today – not sure that we will get that high though but bear it in mind.
For the bears, a break of the pivot is the first thing they will be aiming for, and if they manage that then a test of the 200ema on the 30min chart at 5992 would be their first target. We also have S1 here at 5996, and also just below the round number support. Should we see a break of the 5990 level then 5964 is worth a long as we have the 25 ema on the daily chart here since the moving averages crossed to bullish last week. It would be the first test of that since the cross over so will be interesting to see if it gets a reaction and we continue our bullish October. A rise towards 6150 still looks possible!
A break of 5965 though and a retest of the recent lows at 5930 is likely to happen, with 5890 below that. Not expecting that today unless their is some serious news driven move! Buy the dip still looks to be the best play on the bigger time frames, while shorting the rallies today on the shorter timeframes for today looks fruitful. On the bigger timeframes though I am watching the top of the daily channels on both the S&P and FTSE now – 3581 and 6100. Good luck today.
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