FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
- FTSE 100 closed at 7,052.62 on Wednesday, FTSE 250 at 17,562.42
- Dow Jones closed at 30,273.87, S&P 500 at 3,783.28
FTSE100 live outlook prediction analysis for 6th October 2022
Buy the dip is certainly the flavour of the month so far in October, and looks set to be the pattern today as well. Initially as I’m writing we are on R1 at 7105 so I would expect a drop down from here to test the first key support at the 7065 level where we have the 30m coral.
Below that then the gap close at 7052 is next up, along with the daily pivot at the 7041 level. As such a long around this 7050 level would make sense. It’s possible that we get an overshoot though to test the 2h Hull MA line, which is at 7040 first thing but steadily rising – so should coincide with 7050 depending on how quickly the price drops first thing. This would be the first test of the FTSE100 Hull MA so should in theory bounce, just as the S&P tested its one at 3722 and then climbed well yesterday.
Lower down then the 2h coral is at the 6955 level and would be the next key level of note, just above S2 (S1 is at 6999) and should also see a reaction. The bulls need to keep their bullish momentum going for the moment, but getting the price back above the 7000 level and holding bodes well for a rise towards the next daily resistance level at 7180.
So, initial resistance 7105 as mentioned, then above that the 7148 R2 level, then the daily level 7180. If the bulls were to push past that today then 7212 is R3 but that feels like maybe a bit too far for today, especially as the S&P looks like it might stutter at the 3857 R2 level (which could coincide with 7180 FTSE100).
The news flow negativity has eased a bit as the seasonal early October bounce plays out. We may well get one more drop back as we are just testing the top of the Raff channels before the buying resuming for the Q4 push. I somewhat flippantly mentioned in the chatroom yesterday that a year end close near to 8000 may well play out, and that could well be seen. Feels very optimistic but a strong Q4 may just do it.
Looking for a dip and rise day today really so keep an eye on those support levels for a reaction.
Good luck today.
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