Bulls have a battle on their hands with 7178 7133 support | 7216 7234 7261 resistance

Bulls have a battle on their hands with 7178 7133 support | 7216 7234 7261 resistance

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

  • FTSE 100 closed up 5.67 to 7,223; US stocks rise, while S&P 500 sets record high

London’s premier index edged higher yesterday despite shares in British Airways owner IAG taking a hit from Morocco’s decision to ban UK travellers.

The FTSE closed up 5.67 points to 7,223 as the airline giant ended the session as the biggest loser for the second day on the bounce.  Optimism surrounding the airline industry has faded since the beginning of September as the benefits from easing covid restrictions have been countered by escalating fuel costs and higher airport charges.

Sterling remained flat with £1 buying 1.3818 dollars or 1.1865 euros.

Bitcoin has climbed to a new record high following the successful float of the first exchange-traded fund linked to the cryptocurrency.

Most Asian stocks fell Thursday as investors weighed corporate earnings, elevated inflation and the outlook for China’s property sector. Japan’s yen strengthened.

Equities retreated in Japan and Hong Kong but gained modestly in China. While ailing China Evergrande Group sank on a worsening cash squeeze, other developers rallied after regulators said real-estate risks are controllable. U.S. and European futures were in the red following a mixed Wall Street session in which the S&P 500 neared a record and the tech-heavy Nasdaq 100 slipped.

FTSE 100 live outlook prediction analysis for 21st October 2021

The bulls fought hard yesterday to hold the 7200 level and managed it, with a push towards the 7240 area. It wasn’t exactly a stellar performance though while the US made new highs on the S&P. We are currently experiencing a bit of consolidation and if they buy the dip today then we should remain on track for higher prices. The S&P could go a bit higher yet with the top of the 20d Raff around the 4572 level for today – can they push it that high today?!

Overnight we have just dipped below the 7200 level on the futures, so the bulls will need to be quick out the blocks, and we have decent support at the 7178 level to start with. As such I am thinking that we will get a rise from this area to test the 2h resistance zone at the 7234 area where we could see another stutter. Coincides with yesterdays high as well then.

If the bears defend the 7234 level then we may well see a drop back down to the 7180 level. Should we break 7180 then the 7133 is next up with 7070 below that. That sort of drop would also put the bulls on the back foot, and undo a lot of the effort they have put in so I dont think they will be giving up too easily.

A dip and rise on the FTSE may well coincide with the S&P bulls defending the 4517 S1 level as well, and we also have a rising green coral on the 2h chart. Its at 4513 as I write this but I am thinking that will coincide with S1 later on this morning so a bounce off these two supports would fit well. If that does hold then we should see the S&P continue to push higher. New ATH inbound! Below 4515 though and as per the FTSE the bears will be looking to take it lower and a test of the 25ema on the daily at 4435 currently would fit well. Should it drop down to that moving average line then that could b the springboard for some year end strength.

Back to the FTSE100 and if the bulls were to break above the 7234 level then we should be on track for a rise towards the 7261 key fib levels with R3 at 7272 above that.

The Raff channels continue to trend upwards, and the bottom of the 10day is so close at the moment I would imagine that it will hold the first test at 7180. Its continue to “buy the dip” really for the moment as we emerge from the seasonally weak September and early October period. Its certainly following the pattern!

So, ball is in the bulls court to start with and the onus is on them to do their thing this morning. Good luck, watch 7180, 7166, 7133 support. 7234 7261 resistance.

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