FTSE 100 live outlook prediction analysis for 15th January 2020
Stocks in Europe pushed higher yesterday but it was a heavily muted day overall. In London the benchmark index finished 0.06pc up to 7,622.35 while the FTSE 250 was 0.18pc higher to 21,756.05. In the eurozone, the DAX and CAC ended just 0.08pc and 0.04pc higher respectively.
The FTSE 100 was buffeted gently by currency movements throughout the day, as the pound found itself caught in a tug-of-war between bearish speculators anticipating a Bank of England rate cut, and traders trying to buy the dip following several days of a falling dollar price for the pound.
- European markets tepid as traders worry Washington will now turn focus to continent
- Pound caught between expectations of a cut and traders eyeing a bargain price
Drawing The Line
There’ll be no more cuts to the existing U.S. tariffs on billions of dollars of Chinese goods until after the American presidential election in November, people familiar with the matter said. What’s more: Any move to reduce them will hinge on Beijing’s compliance with the terms of a phase-one trade accord. The two sides have an understanding that the U.S. will review progress and potentially consider additional cuts on tariffs affecting $360 billion of imports from China — but that’ll be no sooner than 10 months after the signing of the agreement at the White House Wednesday, the people said. The period of review, which isn’t expected to be specified in the deal’s text, is intended to give the Trump administration time to verify the Asian nation’s adherence to the terms of the pact. Meanwhile at home, the Trump administration plans to restrict the news media’s ability to prepare advance stories on market-moving economic data, according to people familiar with the matter.
Asian stocks headed for their first decline in five sessions on Wednesday as traders mulled signs that U.S.-China tensions will extend beyond the scheduled signing of a phase-one trade deal. U.S. stocks edged lower with Treasury yields, futures were flat in Japan and Australia, but nudged higher in Hong Kong. The S&P 500 Index slipped after rising to an intraday record high earlier in Tuesday’s session. While positive results from big banks had pushed prices higher, concerns remain about progress in U.S.-China trade negotiations. Treasuries climbed after a gauge of underlying inflation rose less than forecast. Elsewhere, oil ticked higher and gold remained steady.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
The bulls still couldn’t really pull away from the 7600 level with any conviction and after a fairly flat day overall, the 2 hour chart has gone bearish again with resistance at the 7627 level for today. We also have the 30min coral here which has gone red (shows a downtrend). As such, we may well see an initial stutter at this level today, and a drop down towards the S1 level at 7586 looks likely. If this holds then its all good for the bulls still and a rise towards the 7666 level is still on the cards.
However, if the bears start to get some momentum and we break below the 7580 level then a short to target the 7550 or lower level is probably a decent play. Below the 7555 support level then 7525 and 7500 beckon. That said, the 25ema on the daily is at 7539 and we haven’t tested that since the move down and back up after the US/Iran flare up. Watch the 7580 level though and short a break of this, at around the 7576 level if the long gets stopped out.
If the bulls manage to break the 7625 level this morning then we should see some more optimism ahead of the phase 1 signing today. A rise towards that 7666 level is therefore likely. Above this then a test of the top of the 10 day Raff channel at 7730 is on the cards still, even more so if the bulls can pull away from the 7600 level.
So for today, expecting a bit more bullishness, if the bulls can break 7627. Watching for support at 7580 but a break of this is worth shorting. Bit of a mixed bag then but a few levels looking relevant… Good luck today!
IC Markets – offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership and Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and webinar group membership for discussion and realtime trade updates