FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
FTSE 100 live outlook prediction analysis for 2nd August 2021
It was a disappointing end to the week, and the month for markets in Europe at the end of a week and a month that has seen the FTSE250 hit a new record high, and yet we’ve seen very little way of progress in the FTSE100, which finished July more or less where it started.
Nice kick up overnight though to start the week and the new month as we start to see some new money flow in. That said I am expecting a dip and rise to play out today as we have left some gaps on the charts from Fridays close.
The FTSE100 has good support at the 7030 area to start with today and a dip down to that level this morning before a bounce would fit well. That is also just below the 2 hour support level of 7046, and with the 30m coral, daily pivot and 200ema all at 7030 it would be good to see that hold if tested.
The bulls will be keen for a push towards the daily resistance level at 7098 and we also have the key fib at 7089 today. R2 is at 7100 so a rise and then modest reaction here would fit well. The S&P500 bulls will be looking for a push towards the 4431 R2 level as well today and again, we could well see a dip and rise on that as we have the gap at 4404 and also 4397 is the 200ema and daily pivot.
Initial resistance on the FTSE100 is at 7072 with R1 here and where we are as I write this so the bulls will be keen to break this today. Above the 7100 level then the daily coral at 7126 comes into play though the bulls are doing a good job currently of keeping the price above the 25ema currently at 7044. If they manage to break the coral line then we should get a test of the 7200 area where we have the top of both the Raff channels.
For the bears, they will be looking to break the 7030 level as they can then look to test the key fib at 6990 though the bulls will not want to let 7000 go too easily having recaptured it. Below that then S2 is 6963 and the next likely level.
So generally bullish today as we start the month but August is usually a choppy month and also can be weaker due to the lower summer trading levels.
Good luck today.
Asian stocks and U.S. futures rallied Monday as some of the concerns over China’s regulatory crackdown eased and progress on a U.S. infrastructure spending plan aided sentiment. Crude oil slid.
Equities jumped in Japan and Australia, where Afterpay Ltd. surged after digital-payments platform Square Inc. agreed to acquire the buy-now, pay-later company. S&P 500 and Nasdaq 100 contracts climbed as a $550 billion infrastructure package steps closer to passage in the Senate this week.
Hong Kong and China stocks rose after last week’s rout sparked by Beijing’s clampdown on everything from technology to private education and property. The nation also faces a Covid-19 spike and signs of slowing economic growth, spurring bets on monetary easing and a rally in sovereign debt.
Ten-year U.S. Treasury yields and the dollar were steady. Investors are debating whether a months-long rally in Treasuries points to a slower phase ahead in the recovery from the pandemic.
Global stocks in July completed their longest winning streak since 2018 but the pace of gains was the slowest in the six-month winning stretch. Corporate earnings have generally aided equities, bit risks include the impact of elevated inflation and the delta virus strain on the world economy, as well as China’s push for more control over some of its major companies. [Bloomberg]
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