11th March 2019
Stock markets dropped Friday as weak results from US job creation and Chinese trade sparked concern. It was the worst week of 2019, a fifth straight day of decline. China exports plunged 21pc year-on-year last month, the second-worst reading since the financial crisis and well below the 5pc drop pencilled in by economists. Dwindling demand from its beleaguered manufacturing sector caused imports to slide 5.2pc.
The plunge in trade added to growth worries stoked yesterday by the European Central Bank slashing its forecasts and unveiling new stimulus to help battle the eurozone’s slowdown.
US stocks slipped back sharply at the opening bell as US job figures miss expectations and are currently 0.52pc lower at 25,340.30.
Only 20,000 jobs were added to the US economy in February, well below economists’ estimates of 180,000 and a sharp slowdown from the bumper 311,000 jobs added in January.
London’s FTSE 100 index closed down 53.24 points, or 0.74pc, to 7,101.31.
In the eurozone the Frankfurt DAX fell 59.96 points, or 0.52pc to 11,457.84 and Paris shed 36.70points, or 0.70pc, to 5,231.22, extending Thursday’s ECB-fuelled losses.
The pound is still down against the dollar and the euro and Brent crude oil is down $1.62 at $64.66 per barrel.
FTSE 100 Trading Signals, Forecast and Prediction
The bears didnt quite manage to get the price down to 7065 on Friday, instead we found support at 7075 and have climbed quite well since, with the FTSE 100 now sitting at 7145 as I write this. As such I think we may see a bit of an initial dip as we try and close the gap with Fridays closing price at 7104. There are some decent 30min supports in play for this morning as a result of this climb though, and as such I think that the 7121 to 7110 area should see support. There is also the 200 and 25ema lines at 7140 to start with but I think we may well just pop below them (but also be prepared for the bulls to scream out the blocks today!). Should the bears break the 7110 support level then we are likely to see Friday’s low at 7075, while the support level of 7067 still remains in play should it move slightly below.
The 2 hour chart has coral resistance at 7155 which we have dropped slightly from overnight. we also have the 200ema on the daily at 7161 so 2 quite key resistance levels to start the day off. Should the bulls manage to break above these then I am expecting us to revisit the 7210 recent high area from Wednesday last week. The bulls however will be trying to target the resistance at 7230 where we have the 10 day Raff channel and I am expecting that we will see a stutter here.
Should we reach 7230 then the bulls have a bit of a big job to break this area, however if they do then the momentum swings back to the bulls and we are back on for 7300, possibly 7400 prior to Brexit departure day.
Note that the US clock have changed and the US markets will open an hour earlier at 13:30 till the end of the month.
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