FTSE 100 live outlook prediction analysis for 19th February 2020
It was a poor day for European markets overall, with resurgent coronavirus fears and a fairly strong performance for sterling putting pressure on London’s top indices.
- Global shares slip as Apple’s warning on coronavirus impact rattles markets
- Britain’s employment rate stood at 76.5pc in December
- Real basic pay finally climbs back above pre-crisis levels
- German business sentiment plunges
The mood was set early today, with Apple’s decision to scrap revenue forecasts in response to the outbreak caused alarm among investors, who have largely shrugged off the outbreak so far. Among blue-chips, materials and oil firms performed poorly as traders fretted over the prospect of a manufacturing downturn sparked by the epidemic. Utilities firms, seen as bond-proxies, outperformed the index. Many individuals movers were swept up amid the risk-off mood.
Overnight the bulls have fought back and if they can break through this 7425 resistance level then we may well be on for more upside today. Gold has broken out above $1600 as well, as we finally see a bit more of a move into the safe haven that is gold. S&P bulls still need to push past 3400, and we have 2 hour resistance lower down at 3385 now.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Stocks in Asia rose along with U.S. and European equity futures on signs China may be planning to offer more support to the economy reeling from the virus-induced slowdown. Oil advanced.
The bulls have fought back from the 7350 level we saw yesterday and we are back above 7420. Whilst I am thinking that we will see an initial dip of this resistance level again, it might only get down to the daily pivot and coral line at the 7395 level. If that holds and we get a climb then we should see a rise towards the 7470 level today. The SPX still looks like it wants that 3395 to 3400 area which would tally with another leg up on the FTSE as well. Cable is back below 13000 and as such that will help the FTSE 100 bulls.
The 2 hour FTSE chart has now gone bullish with this bounce, and has decent support at 7387 currently, again adding weight to the possibility of a dip and rise playing out today. The market is pretty resilient at rebuffing the bears these days that’s for sure! If the bulls were to break above the 7470 level then a rise towards the 7560 area looks distinctly possible where we have the daily coral and start getting into the possibility of testing the top of the Raff channels again.
If the bears were to break below the 7387 support level, then as mentioned 7350 yesterdays low is the first support. Below this then a test of 7300 would be on the cards, but I am not expecting us to get that low today.
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