FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 4th April 2023
A gauge of Asian equities was led lower by a drop in technology stocks as investors weighed weak factory data against inflation concerns from OPEC+’s plan to cut oil output. The Australian dollar fell after the central bank paused rate hikes. A benchmark of the region’s shares was down around 0.2%, with notable weakness in Hong Kong and Alibaba Group Holding Ltd. one of the biggest contributors to the decline there. Contracts for US indexes retreated slightly following a mixed session on Wall Street.
Asian stocks dithered on Tuesday as investors grappled with inflation concerns in the wake of the surprise cuts to the OPEC+ group’s oil output targets, while treasury yields retreated after frail U.S. manufacturing sector data.
Decent enough performance from the bulls yesterday but still failed to crack the 7700 level. With the price of oil helping to push the FTSE 100 up, along with the new month money, today should see the reverse and we get a bit of a bear Tuesday. Short the rallies today, and ideally we get one up to the 7735 area before a leg down.
Initially today the bulls will be trying to defend the 7676 level where we have the daily pivot, and also to push through the 7700 level that was stubborn resistance yesterday.
If the daily pivot gets broken then the bears will seize their chance from the off and try and drive it down to S1 at 7652 in fairly short order. Despite yesterdays slightly bullish overtone, the 2h chart has gone bearish and has Hull MA resistance at the 7710 area. The 10d Raff is firmly heading up though with this leg up from 7200 playing out nicely. 7645 is also the 2h green coral so should we drop down to this area it would be good to see the 7650 hold.
Initial resistance as mentioned is at the 7710 area with R1 and the Hull MA here (2h), though in an ideal world it climbs as far as R2 and the key fib at 7735. That would also tie in with some more upside on the S&P which looks like it could well test R1 at 4134 today, and possibly even get as high as 4149. This latter level should get a decent bearish reaction so keep an eye out for that.
Above 7735 then 7770 is R3 – could be a big ask for today, but the daily chart is still showing higher resistance at the 7807 level, if the bulls can break 7700 so there does, from a charting perspective, seem to be more strength than the media would lead one to believe. No surprise there then really.
The wobble from the week I was away and banking issues has moved to the back seat now, and inflation will probably come back to the fore. The oil price jump yesterday adding to fears of further inflationary pressures.
So, looking at a rise and dip for today, across the board really. Keep an eye on the R1 & R2 levels on the S&P for the best reactions.
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 FTSE100, 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 FTSE100, DAX40, Gold and S&P500.
- 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