Bull Monday but 6181 6228 resistance | 6099 6050 support | C-19 increases | Risk off sentiment

Bull Monday but 6181 6228 resistance | 6099 6050 support | C-19 increases | Risk off sentiment

FTSE 100 live outlook prediction analysis for 29th June 2020

Friday saw the FTSE 100 give back much of its early gains as US markets weighed on sentiment due to concerns about the rise of Covid-19 cases in America. London’s benchmark index closed 0.2pc higher at 6,159.30.

Friday’s main corporate events:

  • Intu fell into administration
  • The Wirecard scandal triggered disruption in the UK fintech sector
  • Tesco vowed to ramp up its price war against Aldi
  • And Aston Martin announced plans to raise £260m

Half a Million Deaths

Coronavirus deaths surpassed 500,000 worldwide and confirmed cases rose to more than 10 million, according to Johns Hopkins University data. U.S. and U.K. public health experts cautioned against lifting lockdowns too quickly and South Africa warned of a spike in its economic hub. Florida, one of the U.S. states reinstating measures to halt the spread, reported a 6.4% increase in infections while California’s infection rate slowed. U.S. cases rose 1.7% overall. Cases in Tokyo rose by 60 on Sunday, a daily record after Japan lifted a state of emergency last month. Israel is seeking to tighten restrictions on gatherings as cases soar following reopenings. In Australia, the state of Victoria will enforce mandatory coronavirus testing for returning travelers and could put some suburbs back into lockdown.

Asia Market Open

Asian stocks were poised to slip at the start of the trading week as investors weighed a record daily pace of coronavirus infection increases in the U.S. against signs the Chinese economy is continuing to recover from its shutdown. The yen edged up. Early moves in currency markets Monday were muted, with the Australian dollar modestly lower. S&P 500 Index futures slid at the open after global equities fell last week, with stock futures in Japan and Australia pointing lower. Oil declined. Chinese markets reopen after a two-day holiday.

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

Asian stocks retreated and U.S. equity futures fluctuated as the ongoing spread of the coronavirus outweighed signs China’s economy is recovering. Stocks were down in more than 1% in Japan, Hong Kong and Australia, and had a more modest drop in China, where markets reopened after a two-day holiday. S&P 500 contracts swung between gains and losses. South Korean shares slipped after the country’s finance minister ruled out another budget for this year. Treasuries were steady and the dollar dipped.

The US bears dragged everything down on Friday and overnight we have dipped a little bit lower, nearing the 6100 support area. As a result the 2 hour chart is bearish again with resistance to start with at the 6157 level (and dropping lower). This is also Fridays closing price (pretty much!). The bulls will need to push through this today if we are to get the usual bull Monday pattern, though there is decent looking resistance now on the 30min chart at 6190 area, where we are just above the daily pivot and also have the 30min coral and 200ema here. As such, should we get a rise to this area then a short here looks to be worth taking.

The bulls have certainly lost a bit of their momentum recently, and we still have a possible test of the daily coral at 5962 looking like it might happen. Maybe not today though. The S&P continues to defend the 3000 area and in fact the daily coral on that is now at 2982 for support there as well. Can the bulls keep pace over the summer months? A lot will depend on the C-19 news flow and second wave fears are certainly growing in strength.

Back to the FTSE 100 and initial support is S1 at the 6100 level though if this breaks then S2 is at 6052 and looks like it may well hold, at least on the first test. We also have some daily support here at 6050. As such I have put a further long in the trade plan from that level. If that breaks then that daily coral level mentioned above looks likely to be tested, though you would think that, at least initially, the bulls would defend the 6000 level, especially if it coincides with the S&P support levels at the same time.

So looking for a rise and dip scenario to play out with 6090/6100 looking like decent support to start with. Good luck today.

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