FTSE 100 live outlook prediction analysis for 13th November 2020
London’s FTSE 100 closed down 0.7pc, slipping after rallying over 7pc to eight-month highs this week. Slower-than-expected domestic economic growth in September added to concerns about a faltering recovery from the pandemic. Among big blue-chips losses, engineering firm Rolls-Royce slashed 8.6pc after completing its £2bn rights issue.
Falls echoed through Europe, where Germany’s DAX lost 1.24pc and France’s Cac 40 shed 1.52pc. The pan-European STOXX 600 index lost 0.88pc.
Another Executive Order
Donald Trump signed an order prohibiting U.S. investments in Chinese firms determined to be owned or controlled by the country’s military, the latest bid by the White House to pressure Beijing over what the president has described as abusive business practices. China is “increasingly exploiting” U.S. capital for “the development and modernization of its military, intelligence, and other security apparatuses,” according to the executive order. Meanwhile, Trump’s support for Beijing’s critics in Taiwan and Hong Kong presents an early test for President-elect Joe Biden. And this weekend, China joins 14 other Asia-Pacific nations in the aim of clinching the world’s largest free-trade agreement, the culmination of Beijing’s decade-long quest for greater economic integration in the region.
Markets Fall
Asian stocks look set to follow their U.S. counterparts lower Friday — with futures pointing to modest losses in Japan, Hong Kong and Australia — as a resurgence in coronavirus cases added to concern that tougher restrictions may slow the economic recovery. The S&P 500 fell 1% as New York City prepared for the possibility of closing schools while Chicago urged residents to stay at home. Meantime, the Trump administration is stepping back from stimulus talks and leaving Congress to revive negotiations, according to people familiar. Benchmark 10-year Treasury yields fell back below 0.90% and the dollar ticked higher.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Asian stocks followed their U.S. counterparts lower Friday as surging coronavirus cases fanned concern that tougher curbs may hamper the economic recovery without further stimulus. Treasuries extended gains.
Shares dipped in Hong Kong, Australia and China. Japan underperformed amid a record spike in infections. S&P 500 futures fluctuated after the benchmark fell 1% as New York prepared for the possibility of school closures and Chicago urged residents to stay at home. Benchmark 10-year Treasury yields dipped and the dollar was little changed. The yen advanced and oil fell.
Meanwhile, the stimulus saga continued, with the Trump administration stepping back from talks on a relief package and leaving it up to Congress to revive negotiations with House Speaker Nancy Pelosi, according to people familiar.
Friday the thirteenth – will it be a weird spooky one?! The FTSE dropped off the 30min coral resistance yesterday at 6360 and has done a steady 100 point drop since, but found support at the 6260 level overnight. We have key fib support here and also daily support, so if that level is tested again in hours then we may well see a another bounce off that, at least initially.
Below the 6260 level then 6242 is S1, with the rising 200ema on the 30min just below this at 6230. However, if the bears maintain control then a slide down to the 6202 S2 level looks like it may well play out. The key will be the S&P defending the 3500/3520 level for a push back towards the 2 hour resistance at 3585. It climbed off it again overnight, and 3510 also held as support on Tuesday. The bulls will certainly be keen to defend this level, as a break of 3500 will lead to 3450 where we have decent looking daily support – 25ema and also a green coral. Possibly a swing long area ready for a Santa rally into year end. Ties in with daily support on the FTSE at 5975 as well where we have the 25ema.
For the bulls, if they can break above the daily pivot at 6306 to start with then a rise towards the R1 and key fib at 6346 looks likely to play out. Above that then a retest of the 6400 level would be back on the table, but not expecting us to get that high today. The 2 hour chart remains bearish with 6429 resistance from the Hull moving average above that – as such the bulls may struggle to breach this level initially.
So, expecting a similar pattern to the week – an initial dip then a slow recovery up to the resistance level, 6346 in this case before a dip back down. We may well get the Friday afternoon pump on the US markets as well, but as mentioned the S&P really needs to break the 3580 level and that may be a big ask. Usual Friday caution is probably wise today too!
Watching 6260, 6230, and 6200 as the main supports for the FTSE today. 6306 and 6346 as the main resistance levels. Have a good trading session today and also a good weekend.
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