Bear Tuesday | Leicester lock down | 6172 6120 6090 support | 6262 6312 resistance

Bear Tuesday | Leicester lock down | 6172 6120 6090 support | 6262 6312 resistance

FTSE 100 live outlook prediction analysis for 30th June 2020

Here’s a quick summary of what happened Monday:

  • Stock markets on both sides of the Atlantic rebounded today as optimism over easing lockdowns won out over fear of surging coronavirus infections.
  • Most of the session was tepid “with the positive implications of easing lockdown measures weighed up against surging Covid-19 cases throughout the US,” said Joshua Mahony, senior market analyst at online trading firm IG.
  • European key markets were more than 1pc higher, helped by steady gains on Wall Street
  • London also received a boost from investors welcoming Boris Johnson saying the coronavirus crisis needed the type of massive economic response US president Franklin D. Roosevelt mobilised to tackle the Great Depression.
  • Travel stocks climbed during the session, with both TUI and EasyJet surging higher.
  • BP’s share price jumped after it announced the sale of its petrochemical business to privately-owned rival Ineos.

Equity markets finished the session on a high note even though the coronavirus crisis is still a serious issue. The FTSE 100 rose 1.08pc to 6,225.77 while the FTSE 250 climbed 0.50pc to 17,198.66. In the eurozone the Frankfurt DAX and Paris CAC finished 1.18pc and 0.73pc higher.

Urgency and Uncertainty

Federal Reserve Chair Jerome Powell stressed the importance of keeping the coronavirus contagion contained as the U.S. economy bounces back from its deepest contraction in decades. “We have entered an important new phase and have done so sooner than expected,” Powell said in remarks prepared for testimony before the House Financial Services Committee on Tuesday with U.S. Treasury Secretary Steven Mnuchin. “While this bounceback in economic activity is welcome, it also presents new challenges — notably, the need to keep the virus in check.” The Fed released the text of his remarks on Monday afternoon. The Fed chair struck an optimistic note as economic activity resumes. Hiring is picking up, he noted, and spending is increasing, though 20 million Americans have lost their jobs. Meanwhile on the virus front, the World Health Organization has warned that “the worst is yet to come.”[Bloomberg]

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

Asian stocks advanced Tuesday, set to round out their best quarter since 2009 in a rebound from a devastating start to the year, as optimism about a recovery overshadows concerns over an increase in U.S. coronavirus cases. Benchmarks rose more than 1% in Japan, Australia and South Korea. Hong Kong gains were more modest after the Trump administration suspended some trade benefits for the city over China’s new national security law for the financial hub. S&P 500 futures edged higher after the index erased its June decline in wake of positive U.S. home sales data. The dollar and Treasuries were little changed. Oil retreated.

We ended up with a pretty decent bull Monday yesterday as the various worries were shaken off and the S&P defended the crucial looking 3000 level, despite the decent drop off 3037 initially. As a result the 2 hour charts across the board are now bullish, and the ASX200 put in a bullish shift as well today and we may well follow, as the S&P wants to target the 3100 level next, just above R1. That may well drag the FTSE up towards the 6312 R1 level for today.

The support level of the daily pivot and the 200ema on the 30min chart are the first in play today and we may well see an initial climb from this 6210 level, to test the overnight high and the fib level at 6262. If the bears then appear here we may well get a leg down to the 2 hour supports at the 6170 level – we have both the 100 Hull MA and also the green coral here, so it should in theory be a strong and decent support. Should the bears take it below this then the 6090 level comes back into play, with 6050 below that.

For the bulls, if they were to break above the 6262 level then as mentioned R1 at 6312, then further upside towards 6400. Its certainly holding up well despite the bad news thats flowing through – actually bullish of just end of quarter window dressing? Probably the latter! We also have the shortened week this week with the US closed on Friday for Independence Day. As such more news coming out on Thursday, including the monthly job report.

So, looking at the 6170 for main support today, and 6262 and 6312 as the main resistance levels. Good luck today.

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