FTSE 100 Analysis | Trading Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 ended the session flat as a pancake after gains in travel-related and healthcare stocks offset commodity-linked weakness. However, we had a great drop off the 7375 level and found support at 7330. The S&P proper above 4700 as well.
Boris Johnson has announced a move into Plan B measures in a bid to halt the spread of the omicron variant. The Government is once again asking businesses to let employees working from home when possible, starting from Monday.
From Friday, facemasks will be mandatory in most public indoor venues, such as theatres, cinemas, and restaurants, while as of next week larger venues will require the NHS Covid pass for entry.
Most Asian stocks rose Thursday as traders bet the global recovery will be resilient to the new virus strain that is spreading around the world.
MSCI Inc.’s gauge of Asia Pacific equities advanced for a third day, led by Hong Kong and China, where policy makers have been endeavoring to shore up the economy. U.S. contracts dipped after the S&P 500 and the technology-heavy Nasdaq 100 extended a rally. European futures were steady.
China’s central bank set its reference rate for the yuan at a weaker-than-expected level against the dollar, signaling its discomfort with the currency’s recent rally. The British pound touched the lowest this year as Goldman Sachs Group Inc. pushed back its forecast for a U.K. rate hike amid the uncertainty from omicron. The dollar and crude climbed, while the 10-year Treasury yield held above 1.50% and the curve steepened.
Pfizer Inc. and BioNTech SE said initial lab studies show a third dose of their Covid-19 vaccine may be needed to neutralize the omicron variant. Pfizer will have data telling how well its vaccine prevents infections with the omicron before the end of the year, Chief Executive Officer Albert Bourla said, adding he expects a third booster dose will “do the job” in restoring high levels of protection.
Olympics Snub
Canada and the U.K. will join the U.S. and Australia in a diplomatic boycottof the Beijing Winter Olympics over “human rights violations by the Chinese government.” China earlier threatened the U.S. with retaliationagainst its decision not to send officials. In other news sure to upset Beijing, a top American defense official said strengthening Taiwan’s ability to defend itself is an “urgent task” for the U.S., and New Zealand’s Defence Force warned of the increasing security threat posed by China to the country and its neighbors.
FTSE 100 live outlook prediction analysis for 9th December 2021
The bears dropped it off 7375 well yesterday and in fact that is also resistance for today with R1 and the 2h Hull moving average here as well. The failure to break above 7375 has turned that 2h chart bearish so a drop down to test the new daily support at 7235 over the next few sessions would actually play out quite well. That 7230-7250 area would likely then act as a good spring board for the year end push. Seasonally we can have a small dip around now into early next week so again, we have that lending some possible weight to that dip and rise scenario.
I am looking for a drop off 7375 again this morning down to the 7315 level where we have S1. However if the bulls break above the 7375 then 7400 beckons and we have the key fib here, along with R2 at 7406. Above this then R3 at 7432 is next up, but we do also have the top of the 20 day Raff channel in play still at 7390 – ergo this 7400ish area is fairly key resistance. Will be interesting to se if that gets a reaction again today.
For the bears they will be looking for 7315 as mentioned, though obviously need to break yesterdays lows at 7330 first. Below 7315 then 7301 is the key fib and then S2 at 7288 – if it were to get that low then a long here is worth a go. Still mindful of that 7235 support area that could be tested in the next few sessions though! The markets haven’t got too fussed about Boris Johnsons announcement yesterday so far.
The S&P didn’t quote manage to get the 4720 level yesterday but with R1 at 4717 for today we may well see a rise and dip play out on that. It’s in a bit of a consolidation mode at the moment, and 2h support at 4685 (and a possible overshoot of that to S1 at 4677) could get tested if we do dip off the 4717 area.
The Dax looks the most bearish of the lot, with the 15760 2h resistance level in play for today, along with 30m resistance just below that at 15742. Again, we could see a rise and dip play out on that.
Funnily enough we got a rise and dip on the ASX200 today, and it does appear that the FTSE100, Dax40 and S&P500 will all do similar. Been a good recovery from the Omicron dip and the bulls will be keen to defend any dips to keep a push higher for the year end hopes alive!
So, watch the 7375 again, 7400 above that, for resistance, along with 7330 7315 and 7288 as support. Good luck today.
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