FTSE 100 live outlook prediction analysis for 8th June 2021
Played out well yesterday with a decent V shaped day. We may well though see a bit of bear Tuesday today as the S&P would do well to test its 2 hour supports at 4214 and more crucially 4207, before setting ups. recovery climb from there. The Dax and FTSE 100 2 hour charts are also bearish to start with today (Bear Tuesday on the cards by the look of out, at least to start with) and a decline to 15586 and 7012 respectively.
7085 is the 2h FTSE 100 resistance level to start with, just above where we are as I write this. We also have the red 30m coral here. It may hold but that said, I can also see a pop up to 7115 key fib level to start with before a drop down from there. But I am favouring a bias to the bears to start with so short any initial rally.
Above 7115 then the 7131 is R3 but a test of the top of the 10 day Raff channel at 7155 looks more likely to get a reaction.
We may well see a bit more consolidation on the US markets today before a rise tomorrow as Wednesday is usually a better day for the bounce. Bulls will need to defend that 4200 level though. If it holds then we should see a climb towards the top of the 10 day Raff channel on that too, currently at 4270 and climbing steadily.
That should help the FTSE defend the 7000 round number too should it get that low, but the bottom of the 10 day Raff looks worth a long at 7026. 7019 is the key fib, and then S2 at 7012 allowing for an overshoot (nay stop hunt) and longs at this area are worth taking.
So, watching 7085, 7115, and then 7155 as the main resistance; 7020 as the main support. Good luck today.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Housebuilders buoyed the FTSE 100 yesterday, to close up 8.18 points at 7,077.22. It came as the Halifax Price Index said the average home in the UK has become about £22,000 more expensive than it was a year ago, soaring to a record high.
Construction firms Persimmon and Barratt Developments were among the top risers, adding 85p to £32.36 and 12.6p to 768.4p respectively. Airlines also rose following a joint call by US and UK airlines for eased travel restrictions with British Airways’ parent IAGthe second top gainer on the top flight, closing up 5.46p to 201.8p.
Heavyweight technology stocks shrugged off a deal reached over the weekend to introduce a global minimum corporate tax of at least 15pc which targeted multinational technology companies such as Amazon and Google. Shares of Apple, Amazon, Facebook Inc and Google-parent Alphabet Inc opened flat or slightly lower, in line with the broader market’s move. The technology-heavy Nasdaq index declined less than 0.1pc.
Tech Tax
Global policy makers are crafting an international tax plan to make sure Amazon.com is included, even though the U.S. company’s profit margin is below the 10% proposed threshold that would give other countries rights to collect revenue. G-7 finance ministers on Saturday voiced support for proposed rules. Amazon has estimated a global operating margin of 7.1% this year, but two people familiar with the negotiations said Amazon will be included. Amazon shares dropped as much as 1.1% to $3,172.20, briefly hitting a session low on the news, before closing the day little changed.
Asian Session
Most Asian stocks slipped Tuesday as investors await more clues on whether the recovery from the pandemic will stoke price pressures and imperil loose monetary policy. The dollar climbed.
Shares from Japan to Australia pared or reversed gains. U.S. futures gave back earlier climbs, leaving S&P 500 contracts steady and those on the Nasdaq 100 slightly higher. The S&P 500 closed near a record overnight, while a rally in Biogen Inc. on approval of its Alzheimer’s drug boosted the Nasdaq 100.
Ten-year U.S. Treasury yields slipped. Traders are awaiting the U.S. inflation report to assess price pressures and expectations that the Federal Reserve is getting closer to starting talks about tapering asset purchases.
Oil extended a decline, losing some momentum after hitting $70 a barrel in New York for the first time in over two years. Digital tokens including Bitcoin retreated, with the Bloomberg Galaxy Crypto Index shedding as much as 10%.[Bloomberg]
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Can the #sp500 break 4235 today or another day of consolidation….