FTSE 100 live outlook prediction analysis for 21st January 2020
European stocks slipped during trading, with only Germany’s DAX bucking the trend to register a gain on the day. US markets were closed for the Martin Luther King Jr Day holiday. European stock markets closed largely lower with the FTSE 100 down 0.30pc to 7,651.44 and the FTSE 250 dipping 0.18pc to 21,847.04 In the eurozone, Paris’ CAC fell 0.18pc while the Frankfurt DAX managed to push 0.17pc higher.
- Leaders from business, politics, economics and beyond head to Switzerland for the World Economic Forum
- IMF rebukes Trump as global growth gets a downgrade
Chief executives around the world are eyeing up Britain as a key target for growth, viewing the UK as an increasingly stable place to do business in a world beset by political and economic instabilities. The UK is the fourth most important nation for business growth plans behind only the US, China and Germany, according to a PwC report launched at the World Economic Forum’s annual conference in Davos, the most important gathering of global political and business elites.
U.S. President Donald Trump seems to be on a roll when it comes to cooling tariff disputes. Hot on the heels of a “phase one” trade deal with China last week, Trump and French President Emmanuel Macron have agreed to a truce in their dispute over digital taxes, a French diplomat said.
Confidence is surging through China’s stock market, with traders boosting leverage and pumping in funds in ways not seen in years. Investors have driven margin debt past the key 1 trillion yuan ($146 billion) level to the highest since February 2018.
The International Monetary Fund predicted the world economy will strengthen in 2020, albeit at a slightly weaker pace than previously anticipated amid threats related to trade and tensions in the Middle East. Global growth will accelerate this year to 3.3% from 2.9% in 2019, the fund said on Monday.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Yesterday was pretty subdued with the US closed for the day, but the FTSE bulls did manage to defend the 7640 level. That has broken overnight and we have had a drop down to the fib level and S2 at 7606. As such, we may see this hold initially for a rise back up to close the gap and also to test the cluster of resistance levels that are at the 7650 area.
With the bulls failure to break above the 7665 level yesterday, the 2 hour chart has gone bearish with resistance at the 7661 level for today so we may well see the bears appear around here if we do get an initial climb.
Below the 7606 support level then I am looking at a drop down to test the 7568 level where we have the 25ema on the daily chart. This would be the second test of that level as we dropped down to this line when the US took out the Iranian General. So we may well see it hold again under more normal circumstances. If not then a drop down towards 7500 looks possible.
Should the bulls break above the 7659 daily pivot resistance as well today then a climb towards the fib level at 7707 may well play out, (maybe helped by some Davos action) though looking at the 30min coral, 2 hr, and daily pivot all around the 7650 level I think that we will see a stutter here. The S&P still hasn’t broken the 3330 level and in fact has pulled back quite sharply overnight on the futures. Was a slow rise off the 3320 level yesterday from the algo’s but they did manage to get it to 3325 before this drop overnight. 3301 is the fib level to watch on that, and we may well see a bounce there if it slides further.
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