FTSE 100 live outlook prediction analysis for 18th August 2020
The FTSE 100 outperformed its continental peers as London miners lifted the benchmark index. It gained 0.61pc to 6,127.44. Firmer metal prices have helped Anglo American, BHP Group and Rio Tinto. The dip in the pound has given a lift to AstraZeneca, British American Tobacco and Diageo. Travel stocks continued to slump on virus concerns.
The S&P 500 is set to hit a new record high in the coming days after closing just 0.6pc below its February peak on Friday. The main Wall Street index was at 3,381 points in early trading on Monday, just five points below the highest closing level on record. Goldman Sachs analysts now expect the benchmark to hit 3,600 points by the end of the year – up from a previous prediction of 3,000 – following a relentless rally that has boosted it by more than half from its March low.
Chipping Away
The U.S. Commerce Department announced further restrictionson Huawei Technologies aimed at cutting the Chinese company’s access to commercially available chips. The move builds on restrictions announced in May, and is just the latest news in an increasingly tense relationship between the world’s two biggest economies. The changes add 38 Huawei affiliates in 21 countries to an economic blacklist as the U.S. seeks to limit adoption of the company’s 5G technology. The restrictions are likely to further hit both Huawei’s 5G base stations and its smartphone businesses because it relies heavily on foreign chips to make those, further denting China’s ambition to play a key role in global rollout of 5G technology. Huawei’s stockpiles of certain self-designed chips essential to telecom equipment will run out by early 2021.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Asian stocks and U.S. futures drifted Tuesday after the S&P 500 Index failed at another attempt to break a record high amid an impasse over U.S. stimulus measures. The dollar dipped and Treasuries climbed.
Stocks were little changed in Japan and South Korea, fluctuated in Hong Kong and China and rose in Australia. S&P 500 futures were little changed. The U.S. benchmark again ended below its February closing record despite rising past that level during trading. The Nasdaq 100 outperformed, and 10-year Treasury yields ticked lower. The offshore yuan reached the strongest level since early March.
Didn’t quite get the full range yesterday for the orders but that was a decent bounce off the 6060 level into the resistance at 6137 over the course of yesterday. Muted reaction at the resistance though we have dropped back a bit again overnight and with 6141 as the Hull moving average resistance on the 2 hour chart the bulls will be keen to break this level today. Above this then we have the now red 2 hour coral line at 6168 and with this just above R1 and the key fib, along with the cam break out level here we may well see some bears here. As such a short here is worth a go.
Should we break 6168 then I would expect a rise towards the 6212 level where we have the daily coral again, and that may well tally with the S&P rising further, towards the 3399 level that remains in play. Above this then the top of the Raff channels is the area to watch, sitting at the 6350 area.
For the bears, initial support this morning is from the pivot at 6107, and then the 6084 to 6074 area below this where we have S1 and the cam break out level. The bulls will of course be keen to build on yesterdays rise and keep the momentum going for the moment. With the S&P flirting with its highs and looking like more upside, we may well not see a bear Tuesday today, or maybe not till late run the session.
The S&P still looks to be on a path for 3399 and possibly 3409 today where we have R3. Above this then the daily resistance is at 3430. If the bears start to move it down though then 3356 is S3 and likely to be seen.
So, looking at 6141, 6165, 6212 as the main resistance levels. 6084, 6069 and 6000 as the main support for today. Good luck today.
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