FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 rose Friday, lifted by defensive stocks at the end of a choppy week that saw investor anxiety over hawkish central banks, weak economic readings and heightened risks of a global recession. The blue-chip index climbed 2.7% to 7,208 with Hikma, Ashtead and Croda leading the gains.
Data showed British retail sales volumes slid by 0.5pc in May, while separate figures showed consumer confidence in the UK hit a record low this month.
US equity futures and stocks extended a climb Monday as investors assessed whether inflation is cresting and recession can be averted.
An Asian share index jumped over 1.5%, helped by Chinese tech firms. S&P 500, Nasdaq 100 and European contracts were in the green after a 3% Friday surge on Wall Street that cemented the best week for global stocks in a month.
Stocks gained in Asia on Monday amid improved risk sentiment after Wall Street rebounded strongly at the end of last week as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening.
Treasury yields remained subdued and the dollar hovered near the lowest in more than a week as investors continued to assess the outlook for U.S. rate hikes, and the potential for a recession.
- Japan’s Nikkei rallied 1.04%, while Australia’s benchmark jumped 1.69%.
- Chinese blue chips rose 0.54% and Hong Kong’s Hang Seng advanced 1.46%.
- South Korea’s Kospi gained 1.65%.
- MSCI’s broadest index of Asia-Pacific shares rose 1.31%.
However, U.S. stock futures point to a 0.25% decline when those markets reopen. On Friday, the S&P 500 surged more than 3%, adding to an almost 1% gain on Thursday.
Crude oil fell in volatile trading on Monday as the market grapples with concerns that a global economic slowdown could depress demand versus worries about lost Russian supply amid sanctions over the Ukraine conflict.
Both Brent and U.S. West Texas Intermediate (WTI) futures fell more than a dollar earlier. But, prices have rebounded with Brent at $112.78 a barrel, down 34 cents, and WTI at $107.17, down 45 cents.
Unwavering Support
Group of Seven leaders will commit to providing indefinite support to Ukraine for its defense against Russia’s invasion, according to the text of a draft statement from their summit in Bavaria. Leaders are also weighing the possibility of using revenues from tariffs on imports from Russia to support Ukraine, according to the document. But the dazzling backdrop of the Bavarian Alps can’t hide a darker mood among leaders, as the war, spiking energy and food prices, and supply chain disruptions cause problems around the world.
FTSE 100 live outlook prediction analysis for 27th June 2022
After a strong performance on Friday the bulls will be keen to deliver a bull Monday today so we may well see a dip and rise play out. The S&P500 has maintained a decent bounce from the 3650 level and the FTSE100 has once again pulled away from the 7000 level. If the bulls can step up today then we may well see a rise to, and possibly past, the 7300 level.
I am liking the 7200 level as support to start with as we have the 30m coral and the key fib backtest here, though the pivot just below this at 7166 may also attract initially.
Below that then the 7110 level is next up as we have the 30m 200ema here, a key fib level, and also the S1 level at 7090. That would all be pretty bearish though to get that low after this rise, so I am more inclined to go with the higher support levels holding. The ASX200 had a decent bullish performance, as did Asia in general and we may well do the same. Oil had dropped off a little bit today so far as well, so bulls may well be pinning a rise on inflation topping out around the current levels.
The bulls as mentioned will be aiming for R1 at 7319 today, and then we also have 7325 for the 200ema on the daily. We have already popped above the 20d Raff channel top as I write this (7210) and above that 7325 then R2 is at a heady 7398. Can they push that high today? If the US lights the afterburners then it’s possible!
S&P500
Its just popping above the 25ema daily resistance to start with at 3911 so if the bulls can make this early rise on the futures stick then we may well see a rise towards the 3957 level where we have R1 and the top of the 10d Raff channel. I would like to see a drop down really to test the key support for today at 3868 with the daily pivot here and the 30m coral – if that holds then the bulls should be able to push on nicely towards 4000 and possibly higher.
So, dip and rise across the board for today is the plan, watching the 7200 (FTSE100), 3868 (S&P500) and 13125 (Dax40) as the main supports.
Good luck today.
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