Bulls push on but need to make it stick | 7080 7050 support | 7122 7151 7175 resistance

Bulls push on but need to make it stick | 7080 7050 support | 7122 7151 7175 resistance

FTSE 100 live outlook prediction analysis for 11th June 2021

The S&P 500 finally managed to break through the 4235 resistance level and saw a rise to 4250 before dropping back. The bulls now need to defend the 4230 level and with the daily pivot and 30m coral here they may well do today. Usual Friday rally session?

Again it looks like a dip and rise sort of day, and the initial support on the FTSE 100 is at 7086, with the overnight low at 7075 below that. Should the bears break that though a slide down to S1 at 7068 and then the bottom of the 10d Raff at 7041 may well play out. Bulls will of course want to get the price above 7100 asap! I would like to see the 10 day Raff channel hold should it get that low, otherwise we may well be on a path to the 6961 where we have the bottom of the 20d Raff channel.

For the bulls, initial resistance is at 7100 then 7109 above that for R1. 7122 is the recent high and a move through this will suggest that the recent bullishness isn’t fake. This will be confirmed by a further rise towards the R3 and daily resistance level at the 7150 area. The bulls really need to keep the momentum going now, if we are going to get some continued upside.

Usual Friday caveat – be a bit more cautious today and lets see if a dip and rise plays out. Have a great weekend!

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

London’s indexes failed to gain huge traction amid doubts about the UK’s reopening plans, with airlines and hospitality dragging on the market. The FTSE 100 ended up a slight 7.2 points at 7,088.2, aided by an outperformance by BT after telecoms billionaire Patrick Drahi’s Altice Group bought a 12.1pc stake worth about £2.2bn, making it the largest shareholder. The FTSE 250 lost 150.2 points at 22,608.8.

The S&P 500 traded at all-time highs and finally moved through the 4235 resistance level, as investors assessed data that showed consumer prices rose more than forecast last month.

European Central Bank President Christine Lagarde renewed a pledge to deliver faster bond buying even as officials acknowledged for the first time since 2018 that the euro-zone economy is no longer overshadowed by risks to its growth outlook.

Rising Prices

Prices paid by U.S. consumers rose in May by more than forecast, extending a months-long buildup in inflation that risks becoming more established as the economy strengthens. The consumer price index climbed 0.6%, the second-largest advance in more than a decade. Though distorted by the pandemic, the CPI jumped 5% from a year ago, the largest annual gain since August 2008. The gains were in large part driven by the pricing snapback in categories associated with a broader reopening of the economy. The question economists and investors are wrestling with is whether these factors will have a temporary impact on inflation as the Fed expects or whether they will become more ingrained against a backdrop of massive fiscal and monetary policy support.

Asian Session

Asian stocks were mixed Friday after a rally in U.S. shares and Treasuries on bets that a jump in inflation is likely to be transitory, leaving scope for ongoing central-bank support.

Equities edged up in Hong Kong and dipped in Japan and China. U.S. contracts crept higher following a climb in the S&P 500 to a record overnight and a technology rally that boosted the Nasdaq 100. Meme-stocks favored by day traders, such as GameStop Corp., plunged.

The 10-year U.S. Treasury yield held a drop to 1.43%, its lowest point since March. The yield had briefly jumped in U.S. hours on above-forecast gains in consumer prices. The dollar retreated.

The U.S. CPI increase in May was driven largely by categories associated with a broader reopening of the economy, as vaccinations bring the pandemic under control. Despite some signs of wider price pressures, concerns about a spike in longer term borrowing costs that could destabilize global markets have eased.

This latest market reaction suggests investors are aligning with the Federal Reserve’s view that inflationary pressures are temporary and that any changes in ultra-accommodative policy will likely happen very gradually. That approach was also reinforced across the Atlantic Thursday, as the European Central Bank raised its inflation forecast and renewed its pledge to maintain faster emergency bond-buying to sustain the euro area.  [Bloomberg]

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