FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 26th January 2023
Asian equities rose to a fresh seven-month high on Thursday, with Hong Kong shares playing catch-up to other markets’ gains as trade resumed after its three-day Lunar New Holiday.
A good fight back from the bulls yesterday with the FTSE long at 7715 working well. A bit of an overshoot on the S&P down to 3950 which looked like a bit of a fishing expedition for stops, as its now bounced back and holding well above the 4000 level. Probably a leak of todays US GDP data helped too!
Initially today there is FTSE100 resistance at the 7771 level where we have the 200ema on the 30m chart and as such a drop down to test the cluster of supports at the 7750 level would make sense. We have the daily pivot and the green 30m coral here, along with the Hull MA on the 2h chart. As such a drop to here I would like to see reverse and for this level to hold to set up another rise towards the 7820 level.
Above 7820 then the bulls could take it as far as 7851 for a test of R3 and possibly the next daily level of note at 7870. Another 100 up today might be a big ask though!
Bearish wise, if they break 7750 then a slide down to 7720 again would portably play out as we have the S1 level here, and then the key fib just below at 7701. With the positive momentum we have had yesterday though I would expect the bulls to capitalise further on that today. News or something unexpected notwithstanding.
Talking of the news, the US GDP data out at 1330 is forecasted at 2.6%, a slight drop from 3.2% previously. Durable goods orders MoM for December is also out at 1330, expecting a jump to 2.5% from -2.1% previously (was that leaked yesterday to trigger that rally?)
With the recent drop from 7870 the 10 day Raff channel is now heading down, while the 20d remains heading up, though the Dax40 and S&P500 Raffs are both heading up. The FTSE has actually been pretty resilient only dropping as low as 7711 yesterday. Bulls are therefore still in charge for the moment.
So, could be an interesting day and focus will be turning back to interest rates soon. Good luck today.
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