BoE pumps in money | short lived bounce | 6966 6930 6800 support | 7030 7098 resistance

BoE pumps in money | short lived bounce | 6966 6930 6800 support | 7030 7098 resistance

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

FTSE100 live outlook prediction analysis for 29th September 2022

How long will the BoE’s intervention last? It boosted markets and cable but all are now dropping back again, with cable likely to still test the 103 level again (and possibly just below parity) though a bounce around the 100 area would still fit the charts. For the FTSE100, they managed to pump it up back above the 7000 level to an overnight high at 7040 however it has since slipped back.

Initially today we have support at the daily pivot at 6966 though lower down we have decent looking support from both the key fib at 6923, and also the now bullish 2h chart at 6930 with the Hull MA here. As such, a slide down to here to stop hunt the various longs from yesterday would fit quite well. Last day of the trading week and also the month tomorrow so we could see a possible rise for the month end figures. Also end of Q3…..

For the bulls, they will be looking to break the 7040 level where we have the 200ema and the key fib for today, along with it being the overnight high. R1 is then the next key level at 7098 along with the round number. 7100 seems a bit of a big ask for today and I think that the 7050 level will likely get a reaction if seen. Would also fit with the usual pattern of an overshoot of the key resistance – 7040 in this case today.

If more fears and worries over the Government’s plan persists today and the bears take it below the 6930 level then the bottom of the Raff channels are both at the 6800 level for today – maybe wont slide quite that low but its the next level of note on the daily chart. S1 is 6889 so may get a reaction if the bearish momentum isnt too strong though.

All week we have generally been shorting the rallies as the seasonally weaker second half of September plays out, and that remains the case for the moment. The rise yesterday was driven by BoE intervention rather than anything technical so shorting is still the bias for the moment.

Not to much more to say really, watching the pivot on the SP (3683) and FTSE as initial support but full expecting a drop down to the 2h supports on the FTSE100 and the S&P to play out – 6930 and 3630.

Good luck today.

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