Bulls defend 7020 again with 7055 7088 7127 resistance | 7010 6993 6983 support

Bulls defend 7020 again with 7055 7088 7127 resistance | 7010 6993 6983 support

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

The FTSE 100 finished lower as details about the UK’s Covid winter plan failed to inspire confidence among investors. The blue-chip index fell 0.5pc, or 34.37 points, to 7,034.06. Meanwhile the domestically-focused FTSE 250 fell 0.4pc, recording its worst session in nearly a week.

Miners and banking stocks were the biggest drag on the index, with Rio Tinto, Anglo American and BHP Group all slipping after Barclays cut its price targets on the stocks.

Yesterday’s US inflation report also showed that the index for airline fares plunged, decreasing 9.1pc over the month.

Details of the UK’s Covid winter plan also did little to bolster the airline sector, as Boris Johnson offered no details on how the country’s travel policy will evolve and hinted at a tightening of measures if cases surge again.

FTSE 100 live outlook prediction analysis for 15th September 2021

The bears remained in control across the board yesterday though we remain above the key 7000 level for the moment. That said the 2 hour chart is weakly bearish with 7024 support, but it looks like we may well get a drop down towards S1 at 7008 to start with this morning, and a further slide is brewing on the S&P500 as well. That’s below the 4450 level now and could get as low as 4425 to also test S1 today.

The FTSE100 daily chart remains bearish and the 25ema remains untested, which sits at 7097 currently. Any rally to that level will likely see some bears appear there.

Initially we also have resistance at the 30m 200ema at 7057 and just below R1 at 7067. Overnight we have held up ok so we could see an initial kick up to this area before some more weakness later this morning. We also have quadruple witching looming on Friday which is when the various futures contracts roll over. September is also seasonally a weaker month and we may well see more of that until the start of October.

Above the 7097 level then the 7103 is R2 so pretty close, but R3 at 7127 would be next up and certainly gives the bulls some momentum. It does feel like we are going to go a bit lower before we get to the heady heights of 7200 any time soon though.

Below the 7007 level (and in theory the big round number at 7000) we have the key fib at 6993, but then S2 at 6983, with S3 at 6947 – and this lower level ties in with the 6950 level that may well see a bounce. The bottom of the Raffs are both around the 6925 area at the moment, and both are heading down still with the bearishness. That said the daily RSI is at 37 currently, with fear at 31/100 so we may not slide massively still.

So, could be an interesting day today with the 7007, 6993 and 6983 being the key supports, 7055, 7087 and 7103 being the main resistance levels to watch. Good luck today.

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One Comment

  1. UK CPI (M/M) Aug: 0.7% (est 0.5%; prev 0.0%)
    UK CPI (Y/Y) Aug: 3.2% (est 2.9%; prev 2.0%)
    UK CPI Core (Y/Y) Aug: 3.1% (est 2.9%; prev 1.8%)

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