FTSE 100 Analysis | Trading Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 had slumped as much as 1.7pc yesterday while the pound dropped to its lowest level in a year amid rising fears the UK could be plunged back into lockdown to curb the rapid spread of omicron cases.Going long at 7101 turned out to be a rather good play though!
The Telegraph reported that Boris Johnson is considering three options, including a plea to limit household mixing over Christmas, tougher restrictions including a curfew or a full lockdown.
The move risks a backlash from businesses, who warned Chancellor Rishi Sunak he has 24 hours to provide support for hospitality companies or risk the closure of 10,000 pubs and restaurants.
The FTSE 100 dropped 1.7pc but cut some of the losses to end 1pc lower at 7,198. The pound fell 0.5pc against the dollar to its worst since December 2020.
Asian Session
Asian stocks and U.S. equity futures rose Tuesday on wagers that vaccines can help tame the omicron virus outbreak and signs that President Joe Biden could yet revive his $2 trillion economic agenda.
MSCI Inc.’s Asia-Pacific share gauge snapped a two-session drop, bolstered by a rebound in Japan and a rally in Chinese property developers. S&P 500, Nasdaq 100 and European contracts were in the green, signaling stabilization after a global equity index dropped the most this month on Monday.
Treasury yields and the dollar were little changed, while commodity-linked currencies stabilized. Crude oil and iron ore pushed higher. In digital assets, Bitcoin rallied to climb past the $48,500 level.
Antibody Boost
A third dose of Moderna’s Covid-19 vaccine increased antibody levelsagainst the omicron variant, results the company described as reassuring while it works on a shot tailored to the new strain. In the U.S., festive shoppers were out in force, seemingly unfazed by omicron’s spread, while U.K. Prime Minister Boris Johnson held off from imposing new restrictionsfor now, even as Covid hospitalizations in London surged 34% in one week. Germany said it plans tighter contact restrictions — but not until after Christmas. Hong Kong again tightened entry restrictions, ordering all residents returning from the U.K. to stay at a government-run quarantine center for four days upon arrival, before a further 17 days in a quarantine hotel.
FTSE 100 live outlook prediction analysis for 21st December 2021
That was a lovely bounce off the 7100 level yesterday and the bulls have maintained that momentum overnight to get the price back to the 7275 resistance level as I write this. Likewise the S&P has now climbed to its key 2h resistance level at 4611 and just above R1 for today. As such I think that we may well see a small dip off this area before some more upside later. Obviously the news is a bit of a mess at the moment with a lot of confusion and what likely restrictions (or more) might be implemented.
Above the 7275 level then the next key daily resistance level of note is 7305 and then R1 at 7322. With the rise yesterday the 2h chart has gone bullish again, with key support at 7216 for today so should we get a dip down to this area then a bounce here would fit quite well. If the news remains as is then we may well see some more bullishness over the course of this week.
As I write this though then shorting the rally at this 7290 and 4611 level look to be a good initial play. Short the rallies for the moment still until the bulls can get above the 6411 and 7300 levels, though a decent dip again today dow to the key supports ready for another assault by the bulls also fits well!
Above the 7322 level then the bulls will be targeting the 7372 area though with 7322 being R1 and the 10d Raff channel top at 7335 we may well see a stutter around this level.
If the bears capitalise at this resistance level first thing though and we do get a drop down, then the daily pivot and 30m coral at 7210 looks to be a decent target for them. Below that then 7166 is the key fib and and S1 at 7153 just below that. If it all goes wrong for the bulls and the supports start to break then we will probably see a drop down to that 7100 again, and if the news gets bad again a break of that.
So it’s a bit of a mixed bag today, cases for both bulls and bears though I like the look of a dip and rise today. Traditionally we are getting into the stronger seasonal week, plus we have a 4.7 dividend tomorrow – not massive but may help a little bit.
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″]