FTSE 100 Analysis | Trading Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
London’s FTSE 100 closed the session in the red, weighed by energy and financial shares. Reports of the first death in Britain due to the Omicron coronavirus variant added to worries over the impact of tighter restrictions on year-end spending and economic activity. After rising as much as 0.2pc, the blue-chip index erased gains to end 0.8pc lower.
US indices were also subdued Monday as traders are bracing for a wave of central bank decisions, weighing the potential impacts of less generous monetary settings amid a rise in coronavirus infections and lofty equity valuations. The S&P 500 dropped from a record, while the technology-heavy Nasdaq 100 underperformed major stock benchmarks. A gauge of megacap companies slumped, with electric-vehicle maker Tesla down about 5pc.
Stocks fell Tuesday and U.S. equity futures wavered amid caution over economic risks from the omicron virus strain and central bank efforts to curb high inflation. Treasuries and the dollar held gains.
MSCI Inc.’s Asia-Pacific share index fell for a third session, with Chinese property and technology stocks struggling. Concerns about Beijing’s crackdown on China’s indebted property sector have flared anew, hurting sentiment. The nation’s real-estate downturn likely sapped economic activity in November.
S&P 500, Nasdaq 100 and European equity contracts fluctuated. The S&P 500 slid Monday from a record and the tech-heavy Nasdaq 100 underperformed.
Treasury yields declined in U.S. hours, led by the 30-year bond. Traders are braced for the Federal Reserve to taper stimulus more quickly and signal an interest-rate liftoff in 2022, both potential economic challenges.
Slow Growth
Economic activity in China likely slowed in November due to the worsening downturn in the property sector and still subdued consumption. The economy’s slowdown has prompted Beijing to shift policy direction this month, with the central bank easing monetary policy and the Communist Party ordering more fiscal spending in 2022. Meanwhile, concerns about China’s property sector flared anew following a sudden plunge in developer Shimao Group’s bonds and shares, which spooked investors and led to a selloff of other developers.
FTSE 100 live outlook prediction analysis for 14th December 2021
With the bears breaking the 7300 level we got the expected drop down to the daily support at 7235 and have seen that hold. So far anyway…. As I expect you know its Fed week and also OPEX on Friday, so always one to throw a few curve balls our way. Trade small and be nimble is a good mantra this week! However if the 7235 level holds then we should see that act as a decent spring board for the next push back up. Ball is firmly in the bulls court for that to materialise though.
Today they need to make sure that we don’t drop below that otherwise the next daily support level at 7188 is in play and a level that should see a bounce. Last chance for the bulls there for a little bit. Likewise the S&P bulls – they need to defend the 4660 level, otherwise a test of the bottom of the 10d Raff at 4607 is next up, if they get it below the 4640 25ema daily support.
So, focussing on the FTSE for today I am looking at an initial kick up as more buying comes in off that 7235 test yesterday. That should see a rise towards the 200ema at 7282 and then this looks decent initial resistance. The bears may well have a go here, and that ties in with the S&P500 possibly testing the 4689 resistance level as well. A dip from there back down to yesterdays low at 7235 and 4666 then a pop back up ahead of the Fed tomorrow. Buy the rumour, sell the news possibly kicking in.
Above the 7282 level then the bulls will be keen to recapture the 7300 round number, but we have resistance lurking at 7313 with R1 and the key fib here. Again, we could see the bears have a go here, but a break higher will likely see a rise towards the 7340 level where we have the now red 2h coral line.
The FTSE100 daily chart remains bullish and the test and hold of the 7235 level looks positive so far, and we may well have the next leg up starting from here. Santa Rally anyone?!
So, a few key levels in play for today – 7235 again, 7188 below that. 7282 then 7313 resistance, with 7339 above that.
Good luck today.
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