FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
FTSE 100 live outlook prediction analysis for 21st July 2021
The bulls gained the upper hand yesterday really but need to capitalise on that with a hold of the 2 hour support at 6850 now. Likewise for the S&P500 – it needs to hold its 2h support level of 4287 today otherwise we will see dip below the Monday low.
So for today I am thinking that we will get a dip and rise play out with a test of those supports. To start with the 30m FTSE 100 chart is bearish with moving average resistance at the 6900 level and we have dropped off the red 2h coral overnight (from 6920) so we could well see that drop continue initially. 6846 looks good support on the 30m chart as well as we have the key fib and S1 here, so I am expecting the bulls to put up a bit of a fight. The shorter term RSI levels got a bit overbought yesterday so a dip back and bit of consolidation would reset them well ready for a push higher towards the end of the week.
We have the ECB rate decision tomorrow as well.
Below 6845 then Mondays low would be the next level of note at 6809, and then S2 at 6782. That is also then just above the 200ema on the daily chart which is at 6777 for now and would likely hold an initial test.
For the bulls, if they can break above the 6915 level then we could be on for a test of the key fib resistance and 30min 200ema at 6942. That is also just below the R1 level of 6952. A break of this and we should get a retest of the 7000 level and of course the bulls will be keen to recapture (and hold) that. 6995 is R2 though and we have the daily 25ema at 7045 now as well. I would expect the bears to certainly have a go off this upper resistance level if seen soon, as for today we also have the top of the 10 day Raff channel here.
The daily coral line has also gone red for this week, with resistance at 7142 though I am not expecting a test of that today.
Good luck today and lets see if we can get some more upside follow through over the course of today.
Asian Session
Asian stocks pared gains Wednesday and U.S. equity futures wavered as traders continued to evaluate the economic impact of coronavirus flareups. Treasuries trimmed a decline and the dollar rose.
MSCI Inc.’s index of Asia-Pacific shares remained on course to snap a three-day drop but country performance was mixed, with Japan higher and Hong Kong retreating. U.S. equity futures edged down after bargain hunters helped the S&P 500 to all but erase Monday’s slide in a rally led by cyclicals such as industrial stocks. European equity contracts were steady.
A rally in Treasuries has paused, sending 10-year yields back above 1.2%. It remains to be seen if the recovery in yields has legs amid lingering concerns about the delta virus variant that led traders to pare back bets on a Federal Reserve rate hike.
The dollar advanced against major peers for a fifth day. Oil slipped and Bitcoin held below the $30,000 level.
Spiking cases of the more contagious delta strain and curbs to fight infections in a range of nations spooked investors this week, prompting a selloff in risk assets on Monday. But loose U.S. monetary policy, still-high levels of economic expansion and robust corporate earnings growth remain props for sentiment. [Bloomberg]
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