FTSE 100 live outlook prediction analysis for 9th November 2020
The FTSE 100 notched up its best weekly performance since June last week as Joe Biden’s victory in the US presidential election looked all but assured. London’s blue-chip index rose for a fifth day despite a modest 3 point rise to end at 5,910 on Friday, meaning total gains of 333 points, or more than 6pc, last week.
Biden Wins
President-elect Joe Biden is launching his transition effort and preparing a plan to curb the coronavirus pandemic while President Donald Trump weighs legal challenges and has so far refused to concede. In Trump’s inner circle, recognition is growing that efforts to overturn Biden’s victory will be futile, though. Biden called on Americans to put aside the divisiveness of the past four years in his victory speech. The former vice president won or is leading in states that would award him 306 electoral college votes, well above the victory threshold of 270. Meanwhile Vice President-elect Kamala Harris acknowledged her place as the first woman, the first Black person and the first Indian-American to serve in the role.
Market Open
Asian markets are ready to react to the election result after U.S. stocks sputtered on Friday. The dollar began the week with modest declines, extending last week’s move, as markets continued to price in a future under Joe Biden. The Australian and New Zealand dollars climbed in early Monday trading. Turkey’s lira rose after the nation’s economy czar and central bank chief departed. Global equities are coming off the best week since April — they rose more than 7% last week — as technology shares outperformed. Biden’s win may give a boost to emerging markets.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Global equities headed for a record high amid optimism about the outlook under a Joe Biden presidency. The dollar extended declines.
Last week’s embrace of risk continued Monday after Biden was declared the winner of the U.S. election over the weekend. S&P 500 futures rose more than 1.5%, building on the strongest week since April for the benchmark, as the president-elect launched his transition effort. Contracts on the tech-heavy Nasdaq 100 index, which have outperformed since Tuesday’s vote, were up more than 2%. There were also broad-based gains across Asia Pacific and European futures pointed higher.
The yuan and euro ticked higher alongside the Australian and New Zealand dollars. Treasuries were steady and oil pared some of Friday’s slide. Turkey’s lira rose after the installment of a new central bank chief.
Biden in his victory speech promised swift action against the pandemic and an orderly transfer of power, though President Donald Trump is weighing legal challenges and has so far refused to concede. As of Sunday there was a growing sense among Trump’s allies that he’d lost.
The bulls have remained in charge on the futures and the FTSE is now within spitting distance of recapturing 6000. Initially we have R2 just above at 6003, so we may well see a reaction here, but a break above the 5970 level sets us up for a bit more bullishness yet. The S&P needs to break above the 3570 overnight high now, but has left a gap at 3518 – possibly we Geta. dip down to close that gap before further upside.
That could tally with a slight dip on the FTSE initially towards the 5960 level where we would have a backtest of R1 and also the 25ema on the 30min. Assuming that holds then I can see us pushing up today for another bull Monday and a possible break of that 6004 level to go for the 6088 level which is the next major daily resistance. We are just pushing above the 20 day Raff channel initially today, and have the top of the 10 day Raff at 6106 for the moment. The 2 hour chart is also about to go bullish if the bulls can hold on today, and would lock in 5971 as the Hull moving average support level.
It feels like buying the dip today is the right play. The Australian market had a decently bullish session, with a break above R3. The FTSE bulls would certainly like to follow suit!
Support below the 5960 level is the daily pivot at 5909 then the key fib level at 5894. Below that then the 200ema at 5855 is the next level of note on the shorter timeframe, though we do have the green coral on the 2 hour between these at 5885. As such, I think that should we drop as low at the 5885/5910 area then we may well see this hold for the push higher. The futures pushing through the 20d Raff channel bodes well for the bulls.
So, expecting the bulls to maintain the upper hand with a buy the dip stance feeling right. Watching 5960, 5910 5885 for support. 6004, 6088 and 6110 as the main resistance levels for today.
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