Bull Monday if the bulls can defend 7540 | 7605 7641 resistance | 7497 below

Bull Monday if the bulls can defend 7540 | 7605 7641 resistance | 7497 below

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

FTSE100 live outlook prediction analysis for 5th December 2022

Asian equities and commodities rose as traders bet on further reopening of the Chinese economy from Covid restrictions. Currencies of materials and energy exporters climbed.

Off we go for another week. Interest rates once again to the fore though! The FTSE100 bounced perfectly off the 7505 level on Friday and since then it has held the 7550 level well. Initial support is therefore around here to start with, and with the daily pivot, 200ema and 30m coral (green) all here we should see this hold initially this morning.

That would set up a bounce towards, hopefully, the 7605 level where we have R2 and also the key fib for today, as well as the initial daily resistance. The daily levels mentioned in the S/R table this morning seem to be working well and it was once of these that flagged the 7505 for Friday. So worth keeping an eye on them this week.

If the bears were to break below the pivot at 7540 though, then a trip back down towards 7505 may well play out. I am hopeful for a bit of a bull Monday though, and the FTSE100 does still look to be on track for a test of the 7700 level before too long. It just needs to jump a few hurdles en-route!

Below 7505, then 7497 is close as the key fib, and then 7475 for S2 below that. I don’t think it will be bearish enough today to get down there, and the bulls will certainly be keen to defend the 7500 level being the round number and also Fridays low.

Above the 7605 level then 7641 is R3 – possible today if the bulls really go for it. They do have a decent tailwind with the backdrop about interest rates and a possible slowing of the increases. Are we past peak inflation and time to let the recent rate rises take effect or go for one final push?

Do keep this seasonality chart in mind though for the time being – we have followed this well this year.

The Dax40 looks to have initial support at the daily pivot also – around the 14490 level – as we also have the 30m 200ema here and just below the 2h Hull MA support as well. Initial dip down to that from the 14550 level then a bounce back maybe for a bull Monday on this too….

For the S&P500, the bulls will be keen to defend the 4050 level today as we have the daily pivot at 4048 and a rising green 2h coral, with support around the 4042 level. They will need to break above 4095 today though to push on so we may well see a stutter at this level.

Not too much more to say really, the only news item of note due to be released is the ISM non-manufacturing PMI at 15:00. Forecast is 53.1 versus 54.4 previously.  A reading above 50 percent indicates that the non-manufacturing economy in that index is generally expanding; below 50 percent indicates that it is generally declining. Orders to the service producers make up about 90 percent of the US economy.

Good luck today.

Recommended Broker

IC Markets – offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!

Membership and Live Trading

If you would like more detailed analysis for FTSE100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.

What you get

  • Daily Analysis pre market open (sent around 7am each day) for FTSE100, DAX40, Gold and S&P500.
  • Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
  • Telegram live trading room and webinar group membership for discussion and realtime trade updates

Keep up to date with new content, free sign up below with just your email address