Bulls grab their chance but bears fight back | Amazon drops | 7050 7070 resistance | 7007 6981 support

Bulls grab their chance but bears fight back | Amazon drops | 7050 7070 resistance | 7007 6981 support

FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

FTSE 100 live outlook prediction analysis for 30th July 2021

The FTSE 100 rose 0.9pc as a row of Britain’s biggest companies exceed results expectations yesterday however after the bell was a different story as Amazon drove things down. Initially, the S&P and Dow Jones are both up by about 0.6pc (by midday in New York). Both touched record highs, while the Nasdaq has added 0.4pc. Helping markets was strong company earnings including from Ford and KFC-parent Yum Brands.

Amazon upset the bulls apple cart yesterday after the bell and we have seen an overnight sell off, back down to retest the 7030 FTSE support level, along with the 4380 S&P500 support level. Can these hold initially? Today is of course end of month so we could see some profit taking later before a possible kick up next week for the start of the new month.

We are on the cam break out level at 7032 as I write this and also have the 200ema at 7024 to start with as support, however the 7010 level looks stronger as we have the key fib and S1 here. The bulls will need to defend this initially as a break of this will likely lead back down to 6973.

If it were to get that bearish today and we get a break of 6973 then we will likely be back looking at a test of the 6900 level. That said, I wouldn’t be surprised to see the US, and the FTSE100 to a certain extent, defend this drop and see it as yet another buy the dip opportunity.

If they do defend then we could get a push up to the daily pivot at 7052 this morning, and a possible overshoot to test the 30m coral at 7070. This level looks fairly key and should the bulls break this then they will be looking for the elusive 7100 that they just failed to get to yesterday. We had an overshoot of the 25ema on the daily chart resistance level at 7040 yesterday which opens up a possible test of the daily coral at 7130 for the short term. A move above that makes things pretty bullish again though.

For today, slightly cautious as its Friday, but expecting bit of a rise and then a dip later to take place. We had a decent bullish day yesterday with both the key resistance levels being seen and getting reactions (7050 and 7080) and we could wee see another concerted effort to push towards the 7100 level today.

Cable (GBPUSD) has hit some daily resistance yesterday as well so if that were to drop back then that will help the FTSE100 bulls (as most of the companies within it earn in $).

Good luck today and have a great weekend.


Asian Session

U.S. equity futures slid and Asian stocks dipped Friday as traders weighed signs of a slowdown ahead for megacap technology companies and risks from China’s regulatory crackdown. Treasuries and the dollar rose.

Stocks fell in Hong Kong and China as well as Japan. Nasdaq 100 contracts shed more than 1% as Amazon.com Inc. tumbled in extended trading on indications its rapid growth through the pandemic is waning. Asia-Pacific stocks had jumped Thursday after Beijing tried to allay fears over regulatory curbs on private industries, but U.S.-listed Chinese equities later resumed declines.

S&P 500 futures also fell. The gauge rose overnight on data signaling scope for the Federal Reserve to keep policy ultra-loose. U.S. economic growth was solid while trailing estimates. Jobless claims dropped but were higher than forecast.

The dollar snapped a four-day retreat but is on course for its biggest weekly drop since May. Oil mostly held recent gains on expectations that demand from economic reopening will weather delta-strain Covid-19 flareups.

Stocks are rounding out a volatile week amid Beijing’s clampdown on private enterprise, which sparked a rout in Hong Kong and China and briefly caused wider risk aversion. The Fed’s expansive monetary policy continues to underpin broad market sentiment, after Chair Jerome Powell signaled it’s moving only gradually toward paring stimulus if the U.S. makes enough economic progress. [Bloomberg]

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