UK GDP today | 7530 7600 resistance | 7450 7404 support | Bit more bull in the tank

UK GDP today | 7530 7600 resistance | 7450 7404 support | Bit more bull in the tank

FTSE 100 live outlook prediction analysis for 11th February 2020

Investors worldwide have been watching with concern as China, the world’s second-largest economy, battles the novel coronavirus, which emerged at the end of last year in the central city of Wuhan. Stocks in Europe closed lower as the death toll reached 900, however by London’s close, US stocks managed to push ahead, after the S&P held the 3320 support level to rise towards 3358. Overnight we have seen that broken and a rise to 3375 looks possible next, maybe even a test of the top o the 20 day Raff channel at 3394.

London’s benchmark index closed modestly lower this afternoon as traders continued to worry about the coronavirus crisis. It ended 0.27pc lower at 7,446.88 while the wider FTSE 250 crept 0.03pc behind at 21,493.32.

U.S. and European stock futures climbed with Asian equities as investors looked past the likely economic impact of the spreading coronavirus to push a gauge of global stocks close to reclaiming a record high.

FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

The bulls held on well yesterday albeit during a fairly slow session. However overnight has seen a decent push up and we may well have a retest of the 7535 recent high level coming up. We also have R3 for today at 7529 and the S&P on a path towards the 3375 level which is the lower level of its resistance zone (top being 3393 with the 20d Raff here). As such we may well see some more upside on the FTSE today towards that level before we get another leg down.

There is initial resistance at the 7500 level with the 2 hour moving average here, along with R2 and a key fib level. As such we may well get an opening drop, and also a possible gap close towards yesterdays closing price, though I don’t think it will drop as far as 7447, but we do have the pivot and the 30min coral for support at 7551. Ergo the support zone for this morning is 7447 to 7461.

If this support level holds then a rise towards the recent high at 7530 would play out pretty well and mirror the S&Ps likely path for today. However, should the bears break below the 7447 level then the slide will likely gather steam as we head down towards the 7373 level where we have the 200ema on the daily. 7300 is also the bottom of the 10 day Raff channel for now. The top of that channel is at 7650 though so pretty wide.

With the overnight rise on the S&P the 2 hour chart on that has gone bullish with support now at the 3358 level so if we were to get a dip down to that level we may well see a bounce here for a push towards the 3375/3393 area. I thought they were going to try and get 3358 in session yesterday but its had to be on the futures instead.

On the Dax I am looking for a rise towards R3 at 13696 before a possible drop down from there.

So for the FTSE, looking at 7461 then 7405 as support, 7500 and then 7529 as resistance.

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