FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 opened in fine spirits yesterday to touch a new pandemic era high but recoiled to close in the red on the back of drifting oil prices. London’s top index had been boosted by BP posting its highest profits in eight years but the oil major lost steam, ultimately pulling the FTSE with it. The FTSE 100 ended the day flat at 7,567 points. Strength overnight sees us back at the 7625 resistance, with a possible test of the 7655 level looming.
Asian stocks rose Wednesday and a selloff in sovereign bonds paused, bringing some relief for markets from the concerns about tightening monetary policy that have whipsawed assets this year.
An Asia-Pacific share gauge jumped more than 1% to its highest in about two weeks, helped by Japan and a rally in a Hong Kong technology index. China’s stocks climbed in the wake of intervention by state-backed funds on Tuesday.
U.S. and European equity futures advanced after the S&P 500 closed near session highs. Dip-buying lifted the Nasdaq 100 and a U.S. small-cap gauge outperformed.
The 10-year U.S. Treasury yield retreated from levels last seen in 2019. But bond markets remain wary as the Federal Reserve gears up to raise interest rates to quell inflation. A dollar gauge slipped.
Meanwhile, the Bank of Japan chose not to deviate from its planned bond purchases, holding fire even as yields continued to rise.
FTSE 100 live outlook prediction analysis for 9th February 2022
Was a good hold off the 7625 resistance level yesterday for a bear Tuesday, but the bulls were a bit slow to defend, with the 7570 level being breached before a decent bounce from 7550 which has carried through into today. We are back at the 7625 resistance level as I write this and the bulls will be keen to break above this to target the next level of note at 7655. A small dip off this double top level to start with may well play out.
We may well get another dip and rise today as the 7600 area is now decent support for todays session. We have the daily pivot and a now green 30m coral here; the 2h chart remains bullish and has decent support again at 7580. Both the Hull MA and the coral are in this area so if we were to overshoot the 7600 area then 7580 should in theory hold.
The S&P is also just on key fib resistance to start with at 4544 so again a dip and rise for that may well play out today and would fit the chart well. Likewise Dax is on its key fib at 15383 first thing so a drop down to the pivot before a bounce would work out well for that.
A bit of the fear is starting to get shaken off though seasonally one more dip in February is distinctly possible before we start to climb again. Though once again, that’s in theory!
For the bears on the FTSE100, 7600 and 7580 as mentioned are the nearest supports, though should they break 7580 then 7547 is the key fib support and matches yesterdays low. Below this then 7499 is still in play with 7450 below that.
For the bulls, a break above the 7655 level will likely see them get excited and 7700 is on the cards. That splits the difference between R2 and R3 at 7676 and 7722 respectively. The Raff channels continue to head up, with the top of the 10 day quite out wide still at nearly 7800. Maybe later this month for those sort of levels!
The 30min chart is bullish to start with so any dip may well be short lived off the double top at the 7625 level, and the trend coral indicator is green now (bullish trend). The S&P was sneaky yesterday missing that long order at 4462 by a whisker before climbing steadily which actually lends weight to this rise sticking. It feels like we are going to break out of this sideways chop soon, and it will probably be up.
So, could be an interesting day and the bulls once again need to break 7625 really. Then 7655 above that. Bears will be looking to break 7600 and then 7580.
Good luck today.
Recommended Broker
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
Keep up to date with new content, free sign up below with just your email address