FTSE 100 live outlook prediction analysis for 3rd December 2020
The City’s benchmark FTSE 100 index closed firmly higher yesterday after the UK became the first country in the world to approve a Covid-19 vaccine, from Pfizer and BioNTech. While traders were initially tentative about the announcement, stocks rose in afternoon trading. The FTSE 100 added 78.66 points to 6,463.39, while the FTSE 250rose 32.96 to 19,877.7.
Buoyed by a weakened pound, the FTSE 100 was the standout performer across Western markets yesterday. Wall Street, after a downbeat open, was subdued nearly flat following that disappointing ADP jobs report, with the S&P still failing to break 3675, despite another late attempt and again overnight. Maybe it will break today…
Job losses in the aviation industry have risen by about a third in the last three months, after another wave of coronavirus stalled any hopes of an imminent recovery. Around 620,000 jobs have now been cut since the pandemic began, according to analysis by consulting group Five Aero – reported by Bloomberg – compared with 450,000 in early September. That is already above the half a million positions it previously predicted as being wiped out by year end.
China Listings
The U.S. House approved legislation that could lead to Chinese companies including behemoths like Alibaba and Baidu getting kicked off U.S. exchanges if Washington regulators aren’t allowed to review their financial audits. The legislation easily cleared the Senate in May and won bipartisan support in the House. The bill will now go to President Donald Trump, who is expected to sign it. Meanwhile, China’s loosening of control over capital markets is being accompanied by tougher oversight of companies that previously faced little regulation.[Bloomberg]
US & Asia Overnight from Bloomberg
Global stocks paused at all-time highs amid a muted start to equity trading in Asia, as investors assess renewed optimism over U.S. stimulus talks and vaccine approval. Treasury yields ticked up and the dollar remained near a more than two-year low.
Chinese and Japanese shares underperformed, while European and U.S. equity futures fluctuated after the S&P 500 closed at another record. House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer called for immediate talks and said a bipartisan $908 billion aid proposal should be the foundation for negotiations. The U.K. approved the Covid vaccine from Pfizer Inc. and BioNTech SE.
Elsewhere, Australia’s 10-year yield briefly climbed through 1%. Oil edged lower. The pound clawed back some of Wednesday’s losses seen when the European Union’s chief Brexit negotiator Michel Barnier reportedly told envoys the outcome of any deal is still too close to call.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
The bulls continued to push on for the FTSE 100 yesterday as we approach the 6500 daily resistance level. The S&P needs to break the 3675 level that has capped the rises recently, and it certainly looks to be coiling for a break higher towards the 3700 level. The 2 hour support at 3663 has held overnight, and with the 30min coral and daily pivot at 3662, we should see the bulls push on today. That in turn should pull the FTSE up with it, and as per yesterday buying the dip still looks the preferred play. Markets were buoyed by the vaccine approval in the UK, with Boris declaring Spring 2021 will see more normality. A new normal though!
If we do get an initial dip on the FTSE then we should see the pivot hold initially at 6420. This may well act as a spring board for a push back to the overnight highs at the 6465 level, and ultimately 6500. Should the bulls break above this then 6539 is the top of the 10 day Raff channel for today and the next main area as it also ties in with R2 which is at 6538. The bears would probably reappear here if they are going to do anything. If not then the next daily resistance level is at 6565 and worth keeping an eye on.
For the bears, they will be looking to break the 6420 daily pivot, as that opens up a test of the 6380 fib level, and we also have the 30m 200ema just above this at 6388. Ergo this area should see a reaction if we were to get that low, and it also ties in with the Hull moving average on the 2 hour chart. So, a fairly key area, that if the bears were to break then we would likely see a drop down to 6357 and possibly 6303 back on the cards – we have S2 there for today. That said, 6357 is the 2h coral and green, so I think the bears will be unable to do any massive drops just at the moment. However, whilst it all looks bullish still it pays to expect the unexpected!
Looking for 6420 and 6380 as the main supports, 6465, 6500, 6536, 6563 as the main resistance levels. 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 FTSE 100, 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 FTSE, DAX, Gold and S&P.
- 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
[yikes-mailchimp form=”4″]