FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 came back into winning territory yesterday after being caught out the day before for the first time in a week. It ended the day 0.1pc higher at 7,467. Fresnillo was one of the day’s best performers after gold prices edged higher, while M&G jumped after the financial firm said it would buy back shares for £500m.
Stocks in Asia fell Friday amid a drop in the Chinese technology sector and as investors evaluated economic risks from Federal Reserve monetary-policy tightening and Russia’s war in Ukraine.
MSCI Inc.’s Asia-Pacific equity gauge slipped for a second session. Tech shares in Hong Kong slid following U.S. comments that it’s “premature” to speculate about a deal to keep Chinese firms from being kicked off American exchanges. U.S. and European futures edged up after a jump in the S&P 500 on Thursday.
Treasuries made modest gains but remain on course for one of their worst quarterly routs since at least the early 1970s. Oil dipped after European Union leaders refrained from fresh steps to cut imports of Russian crude. The U.S. may unveil measures to help Europe reduce flows of Russian natural gas.
Investors are continuing to grapple with the ramifications of Russia’s invasion and isolation, including elevated raw-material costs that have stoked expectations of higher inflation and more aggressive Fed interest-rate hikes.
The yen snapped a prolonged drop against the greenback that was spurred by the monetary-policy divergence between the U.S. and a still-dovish Japan. A gauge of the dollar declined.
Boxed In
White House officials are increasingly worried that Russian President Vladimir Putin may lash out as Russian troops find themselves bogged down in Ukraine and sanctions begin to bite. Senior officials said Putin’s tendency when boxed in is to escalate rather than back down. Their view is that the Russian leader’s choices could include the blanket bombing of Ukrainian cities, or the use of chemical or even tactical nuclear weapons. In other news, Biden called for Russia’s removal from the G-20; Europe rejected Putin’s demand for natural gas payments in rubles; and NATO called on China not to send military aid to Russia.
FTSE 100 live outlook prediction analysis for 25th March 2022
A fairly static day for the FTSE100 yesterday despite a decent climb on the S&P500. Today we may well see the FTSE100 rise a bit to retest that recent resistance at 7520. 7550 is the pre invasion level as well so a bit of a key resistance there remains, and the slight reticence for the FTSE100 to push higher suggests that its not really sure which way to go at the moment. Keep an eye on that 7520 again though, and we have the Hull MA on the 2h at 7508 for another test.
Above the 7550 level then the bulls will be aiming for 7567 which is R3 though that feels a bit much for today with the general back drop in the world. UK retail sales have also just come in, slightly below forecasts with a print of (Y/Y) Feb: 7.0% (est 7.8%; prev 9.1%; prevR 9.4%). Stagflation worries persist as well for the moment.
For the bears they will be looking to drop it down as far as the 7361 level where we have daily support. Thats below the 10d Raff and the S3 level as well for today so I am not expecting to get down to there today but we may well see this MA line tested within the next few sessions. It’s slowly rising, so could be around the 7400 level early next week.
Closer supports though are at the 7442 level where we have S1 and the 30m 200ema, and I am thinking that we will see this level tested. The 2h chart is quite bearish at the moment and in fact the coral is also red (showing a downtrend) for the moment. Below the 7440 level 7422 is the key fib and 7428 below is the next daily support, along with 7415 being the bottom of the 10d Raff. If we see 7415 then worth a long here.
S&P500
The S&P500 looks a bit more bullish following its strength yesterday and needs to get above the 4528 level. We have the slightly interesting situation that the 2h chart is bullish but we are below the support, so the bulls will be keen to move it up ASAP. 4515 is the 2h coral, while a drop initially down to the 4500-4505 area looks like it will play out initially.
Below that the bears will be aiming for 4470 which is the 200ema and S1 level for today, again a long here is worth a go for a late Friday push up.
Above the 4533 key fib level (and overnight high) 4570 is the R2 level and the next area of note.
Dax40
We have a green 30m coral tying in with the daily pivot at 14290 so it will be interesting to see if this holds initially. It feels like we might well see the key fib resistance tested though at 14403, and that ties in with the R1 level at 14400. So any rise to here is worth a short.
If the bears break below the 14285 level then the key fib support at 14205 is worth a long.
Summary
It’s Friday so stay nimble and once again it can be prudent to do lower stakes in case of weirdness! Watch the 7520 resistance and 7445 support for the FTSE100 today. Have a great weekend and good luck today.
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