BOE to hike rates again | 7207 7251 resistance | buy the rumour sell the news | 7133 7090 support

BOE to hike rates again | 7207 7251 resistance | buy the rumour sell the news | 7133 7090 support

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

FTSE100 live outlook prediction analysis for 22nd September 2022

Buy the rumour sell the news worked well for the S&P500 yesterday and we may well see the same tactic on the FTSE100 today. How much will the BoE increase rates? Still seems slightly weird that as people’s costs increase they drive further rises rather than address the causes of the inflation but hey ho. The increases so far havent had any effect, the only thing that dropped it down a bit is that energy costs decreased! I’m sure economists can explain it though…..

Anyway, for today I am thinking that we will get an initial kick up towards the daily pivot and the red coral on the 30m at the 7200 level, and with the round number here we may well then see the bears appear. If they do then a drop down to the overnight low at the 7140 level would fit well, and we are also just above S1 there at 7133.

Above the 7200 level then the bulls would be looking to regain some ground with the 7231 200ema next up, then R1 and the key fib at 7250 above that. Higher than that may well be a big ask, but a lot will depend on the S&P500 defending the 3750 level.

The 2h chart is also bearish to start with today with the 7190 level as resistance on that, along with the S&P also being bearish 2h and 3818 resistance on that.

Talking of the S&P and those levels I am therefor looking at a range in play of 3820 to 3750.

For the FTSE100 bears, a break of the 7133 level will likely lead down to the daily support at 7103, and possibly an overshoot to S2 at 7090. Both the Raff channels are heading down as well so now cementing the bearish trend for the moment as we are following the seasonal pattern here before more buying in October.

So, once again stay nimble and watch for the BoE at midday with an increase to 2.25% forecasted.

Good luck today.

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