FTSE 100 live outlook prediction analysis for 24th August 2020
Here’s a quick recap of what happened Friday:
- European equities fell amid signs of a stuttering recovery on the continent
- UK retail sales surprised in July, rising 3pc above pre-crisis levels
- Government debt topped £2tn for the first time ever
- The pound declined after Michel Barnier warned that a post-Brexit trade deal is “unlikely”
- JPMorgan is to challenge UK banks with digital launch in early 2021, Sky News reported
The main news is that the futures have risen since Friday night, with the S&P above the 3400 level and with 3430 in its sights. The FTSE support at 5950 held on Friday and we are now back above the 6000 level, as the UK recovery ‘gains speed’ as activity rises to seven-year high according to data. Let’s hope it’s not a dead cat bounce from the pent up demand.
South Korea
The South Korean government is studying the need to raise social-distancing restrictions to the highest level as officials warn the country is at the risk of a “massive nationwide outbreak.” An additional 397 new virus cases were reported on Sunday, the highest number since March 7. A quarter of those cases were reported outside of Seoul’s metropolitan area. Infections have exceeded 300 for three days. This comes as cases in Europe and Asia are on the rise again, while they are slowing in the U.S. India marked a grim milestone with 3 million infections. The global pandemic passed 800,000 deaths and 23 million cases. President Donald Trump announced that a new treatment involving blood plasma donated by people who’ve recovered from the disease has received emergency use authorization.
Market Open
The dollar was steady in early trading and stocks in Asia looked set for a muted start to the week, as investors monitored a mixed global picture for the coronavirus and looked ahead to Federal Reserve Chair Jerome Powell’s policy speech on Thursday. The greenback was steady against most G-10 peers as currency markets opened. S&P 500 futures nudged up at the open. Equity-index futures signaled a small decline when Japan begins trading, while South Korean assets will be closely watched as that country considered further restrictions to halt an infection flareup there. U.S. shares ended Friday with a fourth week of gains and tech shares set a fresh all-time high.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Stocks rose, led by gains in Hong Kong on signs of a thaw in U.S.-China tensions, with investors also looking ahead to a policy speech by Federal Reserve Chair Jerome Powell later in the week. Hong Kong shares climbed more than 1%, aided by a rally in WeChat owner Tencent Holdings Ltd. People familiar with matter said President Donald Trump’s team is privately seeking to reassure U.S. companies that they can still do business with the WeChat messaging app in China.
The bounce off the 5950 support from Friday has continued and the bulls will be relieved that the futures are back above 6000 as we start the week. As a result of this rise the 2 hour chart has swung bullish again and we have 6000 as support from that. That also ties in with support there from the daily pivot and the 30min coral line. As such, should we get an opening dip down to that area then a long here looks to be worth a go. Should the bears break below the 6000 level then S1 and the fib are around the 6955 level, and with Fridasy low just below here, we may well see a bounce here again. If not then the slide would likely continue to 5900.
However, I am feeling more bullish today as the S&P futures have risen above the 3400 level, and as such we should be on a path to finally manage the 3430 level from the daily chart, along with R2 at 3425. R3 is at 3450 – not sure it will add that much today but you never know as we have the top of the 10 day Raff channel at 3442 in-between those two resistance levels – a short here may be worth a go if it does get that high.
For the FTSE, if the bulls were to get it above the 6100 level today then 6140 is the next level of note, with R3 just above this at 6159. 6197 is higher up and may be seen later this week if the news flow remains positive – this is the daily coral resistance, and also ties in with the top of the 10 day Raff channel.
For today though I am watching 6045 as initial resistance, 6058 above that then the 6100 level. We may see small dips from these levels as it would appear that we are on track for a bull Monday again. 6000 and then 5955 are the min supports that I am watching for today as well. Good luck today.
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