FTSE 100 live outlook prediction analysis for 15th September 2020
After the initial rise to 6080 the ftse drifted down and stayed there, despite the strength in the US markets. London’s blue-chips barely shifted during the session, held down by a slight rise in the pound that weighed on energy and mining groups.
- Wall Street jumps but FTSE struggles to find direction
- Eurozone industrial production rose 4.1pc in July as pace slows
- GardaWorld makes 190p/share takeover bid for G4S
- Government set to step in on $40bn sale of Britain’s Arm to Nvidia
- Oracle beats Microsoft in race for TikTok’s US business
Sterling was up about 0.6pc against the dollar at the European close, clawing back some of the value lost over a painful period for the currency – which has been battered amid the turmoil over the Government’s latest Brexit moves.
Markets Drift
Asian stocks looked poised to drift Tuesday after snapping two weeks of declines Monday. U.S. shares rose for a second day amid a flurry of deal activity, while the dollar weakened. Futures dipped in Japan and Australia and were little changed in Hong Kong. The S&P 500 touched a week high before paring gains, while the Nasdaq 100 Index broke a two-day slide. Positive vaccine comments from Pfizer’s CEO, which boosted Asian shares Monday, helped sentiment. Treasuries were little changed. Elsewhere, the pound strengthened as U.K. Prime Minister Boris Johnson faced a rebellion in Parliament against legislation that would override key elements of the divorce treaty signed with the European Union. Oil was little changed around $37 a barrel.
Asian Session
Asian stocks drifted Tuesday as investors turned their attention to a Federal Reserve meeting for clues on monetary policy as economies recover from the pandemic. The yuan added to gains that lifted it to the highest this year.
Japan’s stocks fell, but pared losses, and Hong Kong stocks rose after Chinese economic data showed the recovery gathering pace. Equities also climbed in South Korea and China, while Australia slipped. S&P 500 futures edged up after the benchmark gained Monday. The Nasdaq 100 Index broke a two-day slide. The dollar dipped and Treasuries were flat.
Investors are awaiting the Fed’s policy meeting Wednesday to gauge the outlook for markets following a slide of about 2% in global stocks this month. The Fed is expected to maintain its dovish stance after earlier saying it will shift to a more relaxed approach on inflation. Central bank largesse is shoring up sentiment in the face of risks from the pandemic, the U.S. presidential election and the possibility of a no-deal Brexit.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Despite yesterday’s fairly lacklustre performance the FTSE 100 managed to remain above the 6000 level. With the drop off 6080 the 2 hour chart has gone bearish and we have initial resistance on that at 6053 for today, so the bulls will need to push past that to enable a move towards the 6110 level, where we have the top of the 20 day Raff channel. This level also looks pretty key resistance. That said there are a few other key resistance levels in the way first at 6077 for the fib level and R1 at 6070. So the bulls will certainly have their work cut out. We may also be on for a bear Tuesday!
Initial support is at the 6000 level once again, with the 200ema, S1 and the key fib all here, along with the cam break out level just below at 5988. As such a tentative long here is worth a go, especially as the price is now holding back above the 25ema on the daily chart, lending weight to some support for the bulls and “buy the dip”.
The S&P continues to stay bullish, and a rise towards the top of the 10 day Raff at 3430 seems to be panning out nicely. We have R2 at this level as well for today (R1 at 3409) and as such, I am thinking that we will continue to remain bullish on that ahead of the Fed meeting tomorrow – buy the rumour, sell the news type pattern. We also have option expiry on Friday so will likely remain fairly range bound this week – 3425 being the most recent high too (Thursday).
So, looking at a rise towards the 6053 level, and possibly higher at 6110, but also 6077 for resistance today. Those looks to be the three main levels. For support, 6000-5985 and then 5970 for S2. Good luck today.
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