Back to 7600 which the bulls need to defend | 7571 below | 7630 7655 7671 resistance

Back to 7600 which the bulls need to defend | 7571 below | 7630 7655 7671 resistance

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

FTSE100 analysis & prediction for 8th June 2023

The exporter-heavy FTSE 100 fell 0.1pc to close at 7,624.34 after as weak trade data from China drove miners lower, while shares of homebuilders dropped on dismal domestic housing prices data. The domestically-focused FTSE 250 midcap index fell 0.3pc to 19,152.27.

Asian shares slid on Thursday after a surprise interest rate hike by Bank of Canada brought back fears that U.S. rates could stay higher for longer and the Federal Reserve could remain hawkish when it meets next week.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.48%, while Japan’s Nikkei fell 1%. Australia’s S&P/ASX 200 index eased 0.29%.

FTSE100 Analysis

At 1330 today we have the Jobless claims data out in the USA so expect a bit of volatility then. I am thinking that we will see a bit of a rise and dip play out today, with a climb ahead of the news. The FTSE100 has held on well overnight despite the S&P dropping, and as such I think we will see a climb towards the 7655 level again (double top with Monday’s high) and possibly as high as R2 at 7672. We also have the key fib here for today, so could well then see a stumble here.

Initially we have the red 30m coral as resistance at the 7629 level, and 7608 as support from the green 2h coral. We are certainly condensing at the moment between support and resistance levels that are getting closer, so expect a break out shortly.

Talking of breakouts the USA charts actually look like they should, and could be capable of, a break out upwards.

Above the 7672 level then 7695 is R3 and just below the top of the 20d Raff channel at the 7708 level. It’s possible that with good news we could see the bulls push it to here, especially as it’s held on well since pushing above the 7600 level this week.

Support wise, then 7600 looks fairly key to start with as we have S1, daily & 30m 200ema and the 2h coral as mentioned. As such I would like to see this level hold. A break of it however, and then the bears would be looking for a move down to the key fib at 7572 and just below S2 at 7578.

I think we will be a bit more bullish today than that though (famous last words!)

The Raff channels on the S&P500 continue to head upwards so buying the dip makes sense, though the 2h chart remains bearish with a good reaction at the 4298 level yesterday, just shy of the overshoot to 4305. It will be interesting to see if they do defend any slides today, and the 4246-4240 area looks to be decent support with the key fib, S2 and the 10d Raff channel all in this area.

Good luck today.

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