Bull Monday with 7055 7088 7108 resistance | 7031 7010 6992 support | UK GDP stalls

Bull Monday with 7055 7088 7108 resistance | 7031 7010 6992 support | UK GDP stalls

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

The FTSE closed higher Friday but recorded its worst week since mid-August as GDP growth stalled amid rising Covid cases and continued supply chain troubles.
The blue-chip index closed up 0.1pc with miners leading the gains, while the FTSE 250 dropped 0.3pc as financial and real estate stocks weighed. It came after new figures showed economic output rose just 0.1pc in July, the lowest monthly increase since the UK was plunged into a fresh national lockdown in January.

While the FTSE 100 shrugged off the data in today’s trading, wider concerns about a slowing economic recovery have weighed on markets in recent days, pushing the index down around 1.5pc for the week.

US producer prices jumped in August, posting their biggest annual gain in nearly 11 years as persistent supply chain woes pushed up costs. The producer price index jumped 8.3pc year on year to August – the biggest annual advance since November 2010. It followed a 7.8pc surge in July. Excluding the volatile food and energy components, the so-called core PPI advanced 0.6pc, and was up 6.7pc from August of last year.

FTSE 100 live outlook prediction analysis for 13th September 2021

We should be on for a bull Monday and if the bulls can break the 7058 level early on, a test of the 7088 level where we have the key fib resistance for today. That is also just above R2 of 7083 so I am thinking that should we get this high then a stutter here may well happen. The ASX200 had a rise and dip day today and we may well do the same.

The S&P500 is not far off its key support at the 4455 level and just above the bottom of the 10 day Raff channel, while 4453 is the key fib support for today. Should we get a flush down towards this area then I would like to see that hold for a decent bounce. A break of 4450 though and things will get a lot more bearish with the bottom of the 20 day Raff channel coming into play at 4428. That may well drag the FTSE100 below the 7000 level for a test of the 6940 area where we have the bottom of both the Raff channels and as such an area that may see a bounce. I don’t think we will get that low today though as generally I am feeling bullish for today.

Back to the FTSE100 and the bulls will be keen to pull away from the 7000 level. With the bit of strength on Friday the 2 hour chart has gone bullish and has support at 7013 which has held overnight. If the bulls were to get the price above the 7090 level then it bodes well for a rise back towards the 7200 level this week, and last weeks wobble may well be shaken off. The buy the dip continues for a bit longer. We usually have a weaker mid September but maybe, as per August, it just happened a bit earlier again.

7108 is R3 so look for that level above the 7088 level, but 7058 is the red 2 hour coral to start with so key level resistance initially. If the bulls can break that (and it was also Fridays high) then we should see the 7088 level this morning.

For the bears, they will be looking to break the 7005 level seen late on Friday, though S1 and key fib support is not much lower at 6992. A break of that though and 6970 is S2 and likely to be tested, and then as mentioned that 6940 area. We have the Raffs and also S3 here but I am not convinced that we will get that low today.

Good luck today, watch 7058 and 7088 for resistance, 7010 and 6992 for support.


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