FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 was lifted yesterday by strong results from spirits maker Diageo, with banks benefited from rising yields. The blue-chip index was up 1.1pc to 7,554. Banks were among the top boosts to the index, tracking stronger yields after the US Federal Reserve signalled a March interest rate hike while investors priced in another increase by the Bank of England next week.
Asian stocks on Friday recovered some of the losses sparked by the Federal Reserve’s pivot to tighter monetary policy, while U.S. equity futures climbed after strong Apple Inc. earnings bolstered sentiment.
Japan helped an Asia-Pacific share gauge to rise for the first session in six. China fluctuated as state-run media tried to talk up equities, arguing they offer long-term potential following a slump. But Chinese real-estate developers sank on fresh concerns about the ailing property sector.
Contracts on the tech-heavy Nasdaq 100 outperformed after Apple Inc. rallied in extended trading on record sales. European futures wavered. U.S. shares Thursday ended lower in a volatile session, again failing to hold intraday rallies. The Russell 2000 small-cap index slumped into a bear market.
A dollar gauge was on course for a weekly jump of about 1.5%, putting it in sight of the strongest level since 2020. Bets on a faster pace of Fed hikes to fight inflation have boosted the currency.
Treasuries slipped and the yield curve remained flatter. The latter is a possible sign of worries over the U.S. economic outlook as the Fed dials back support.
Apple
Apple posted record quarterly sales that sailed past Wall Street estimates. Sales climbed 11% to $123.9 billion in the fiscal first quarter, which ended Dec. 25. The surprisingly strong results suggest that fears of supply upheaval were overblown. In other Apple news, the company is planning a new service that will allow iPhones to accept payments with the tap of a credit card, essentially turning them into payment terminals.
War Unthinkable
War with Ukraine is unthinkable, according to Russia’s foreign ministry, despite 100,000 of its troops massed on the border. The Kremlin is considering an American response outlining ways to defuse the conflict, but remains unhappy that its demand to close the door on Ukraine’s potential NATO membership has been rejected. In a phone call, U.S. President Joe Biden and Ukrainian President Volodymyr Zelenskiy talked about new ways to bolster Ukraine’s economy.
FTSE 100 live outlook prediction analysis for 28th January 2022
Well this week has certainly been volatile and the threat of the Russian invasion still looms large. The FTSE100 however has held on pretty well and managed to climb back to the 7600 resistance area yesterday before drop off again. 7598 therefore remains the line on the sand and the first key resistance level for today, with 7638 above that.
If the bulls were able to push on, and it will also probably need the support of the USA bulls, and the S&P pushing past the 200dma which has capped it well so far, then it may well climb towards the 7664 level where we have the top of the 10d Raff channel. That may well be a big ask for a Friday, ahead of a weekend with a possible invasion though!
I wouldn’t be surprised if we get a rise and dip play out today across the board, with profit taking ahead of the weekend. The ASX200 had a decently strong showing today and the FTSE100 may well follow suit, though the bulls will need to defend from the get go really, especially as we have the green 30m coral to start with at the 7543 level.
Below that coral support then the daily pivot and also daily support are at 7490, and just above the 200ema at 7476 – so any dip down to this area would act as a good jumping in point for the bulls again. We have had a lot of chop and fake moves this week (with Fed, earnings, etc) so lots of bull and bear traps playing out.
Should they break below 7475 though then a 7452 level is next up with the key fib at 7444 as well. I expect we will be having another choppy day.
Lower support is at 7402 though we may not see this today.
On the other hand, if the bulls broke above the 7663 level then 7700 beckons as the next key level and keeps the FTSE100 in a firmly bullish mode.
The S&P500 has initial support at the daily pivot at 4348, though as mentioned above the bulls really need to break above the 4450 level to push on much higher. The daily chart does remain bearish though and a rise to test the 25ema at 4549 would still fit in well, with a further drop from that level.
Likewise with the Dax40 – a drop down to start with to test the daily pivot at 15370 before some more upside would also fit well, though a break of that pivot would likely see a slide down to the 15273 key fib level.
Stay cautious today as I expect we will get another freaky Friday. Key resistance 7598, 7638, 7664, Key support 7550, 7491, 7452
Good luck today and have a great weekend.
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