7755 still the support | 7790 still the resistance | 7823 above | 7720 below | Debt ceiling

7755 still the support | 7790 still the resistance | 7823 above | 7720 below | Debt ceiling

FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 23rd May 2023

Asian stocks crept to two-week highs in cautious trade Tuesday, helped by hints of progress toward avoiding a U.S. default and by resilience in Japan’s economy, with industrial sector surveys in Europe and the United States in focus later in the day. MSCI’s broadest index of Asia-Pacific shares outside Japan touched its highest since May 9, and was up about 0.3% by mid-morning. Japan’s Nikkei (.N225) extended its winning streak into a ninth session and rose 0.6%. S&P 500 futures advanced 0.2% and European futures rose 0.16%.

President Joe Biden and House Speaker Kevin McCarthy could not reach an agreement Monday on how to raise the U.S. government’s $31.4 trillion debt ceiling with just 10 days before a possible default, but vowed to keep talking.

Minneapolis Federal Reserve President Neel Kashkari said overnight that it was a “close call” as to whether he’d vote to hike again or pause at next month’s meeting. St. Louis Fed President James Bullard said another 50 basis points of hikes might be required.

Nice drop and recovery yesterday fuelled by a fake image of an explosion near the Pentagon (someone made a nice chunk of change manipulating the markets like that) but we have still failed to break the 7790 level really. As such that remains the resistance in the short term with the 7830 above that.

It might have a go pushing up towards 7810 though today and we have R2 at 7808 so could see a drop off from there. Bulls are slightly cautious while the debt ceiling negotiations remain deadlocked. I expect that it will be lifted but they are probably waiting for confirmation. Not like it’s the first time we have been here!

Initial support is at the 30m 200ema at 7766 and we also have the green 2h coral here. Whilst it’s not the first test the bulls might want to hang onto the overnight support. The S&P500 is also sat on a decent support at 4195 to start with so if that bounces it could help an initial rise on the FTSE100.

Below 7755 then ultimately I can still see a slide down to the 7720 area again, and we have the key fib at 7723 for today. If it were to get this low (and we may well see a bear Tuesday today) then this level may well see a bounce towards the end of the session, or after the bell.

Below that then a break of 7707 which held the other day would likely see a slide to 7675. The bottom of the 10d Raff channel is at 7700 though and is now heading up again. Ergo this area should see a bounce.

Not too much more to say really. We will probably end the week a bit stronger once the debt ceiling issue gets sorted out.

Good luck today.

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