Bulls back in the driving seat but need to break 7050 | 6974 6953 support | Looking positive for now

Bulls back in the driving seat but need to break 7050 | 6974 6953 support | Looking positive for now

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

FTSE 100 live outlook prediction analysis for 23rd July 2021

The bulls are hanging in there and the 6960 support level held yesterday. The key still remains holding above the 7000 level for the moment though and 7044 is the daily resistance that the bulls really would need to break and ideally hold above. With the 25ema here and following the bounce this week we could well see some profit taking (and another go from the bears) at this level.

Initially we have resistance at the 6995 level with the 30m coral line here and also the round number. We could see a dip from this towards S1 at 6953, and that would also test the Hull moving average nicely on the 2h chart, to set up another climb today.

The ASX200 had a fairly bullish season and that may well roll into ours as well. If the bulls can break above the 7000 level to start with then I am looking for a test of the key fib at 7029, and then the 7044 as mentioned. Above that, and R2 is also at 7050, so could be a tough nut to crack today, I am looking at R3 at 7082, and we also have the 10d Raff channel here. Can the bulls push that high today?

They may get a helping hand from the S&P as that remains bullish as long as the 2 hour support at 4344 (and rising) holds, and could well push into the 4400 and higher levels today. May even get a late Friday pump as not had one for a few Fridays now so its probably due!

For the bears, they will be looking to break the 200ema initially at 6974 as that would open up S1 at 6953, and then the key fib at 6935 below that. 6920 is the 2h coral and green, so it would be good to see this level get a reaction, otherwise a retest of that 6890 level looks likely.

Generally today though I am thinking that it looks fairly positive – another day of buying the dip. Good luck today and have a great weekend.

Asian Session

U.S. equity futures climbed Friday and Asian stocks slipped after earnings optimism helped Wall Street edge toward an all-time high despite mixed economic data. A gauge of the dollar held a recent decline.

U.S. and European contracts were up after the S&P 500 advanced closer to a new peak. Technology firms like Microsoft Corp. rallied and the Nasdaq 100 reached a record, while cyclicals lagged. Strong results from Twitter Inc. and Snap Inc. boosted Facebook Inc. and Alphabet Inc. in extended trading.

In Asia, Hong Kong stocks slid as potential penalties for ride-hailing giant Didi Global Inc. sapped sentiment toward Chinese tech firms. Regulators are considering serious, perhaps unprecedented, penalties after Didi’s controversial initial public offering last month. Japan is shut for a holiday.

Longer-term Treasuries snapped a two-day drop Thursday and strong demand for an auction of 10-year inflation-protected securities produced a record-low yield. Cash Treasury trading resumes when London opens.

Global stocks are on course for a modest weekly gain, bolstered by generally robust corporate profits and stimulus support. At the same time, July’s decline in 10-year U.S. Treasury yields may for some signal concern over a possible peak in economic growth, in part as the delta coronavirus strain forces mobility curbs in some countries. [Bloomberg]

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