FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
Yesterday, the FTSE 100 recovered some ground as finance firms and commodities all had a strong session. The index ended the day up 1.5% at 7,121.
European stock markets are expected to start higher, with financial spreadbetters predicting London’s FTSE 100, Paris’s CAC-40 and Frankfurt’s DAX to open as much as 0.3 percent higher, while a 0.1 percent rise in U.S. stock futures also pointed to a firm Wall Street open.
Stocks climbed in Asia on Tuesday, US equity futures pointed higher and Treasuries retreated amid steadier investor sentiment compared with last week’s rout in global shares.
MSCI Inc.’s Asia-Pacific index snapped an eight-day slide. Japanese and Hong Kong equities led gains, while China was more subdued as traders assessed the possible impact of Covid outbreaks.
The drop in Treasuries took the benchmark 10-year yield toward 3.30%. Further volatility in bonds, under a Federal Reserve intent on sharp interest-rate hikes to tame inflation, could shake global markets anew.
Australian yields pared or reversed increases — central bank Governor Philip Lowe reiterated additional interest-rate hikes are likely but pushed back on expectations of a 75 basis points move in July.
The dollar dipped and the yen hovered near a 24-year low, sapped by the contrast between a super-dovish Bank of Japan and a hawkish Fed.
Oil ticked higher as traders weighed the odds of a recession in the US amid Federal Reserve tightening, with President Joe Biden pushing back against the notion that the world’s largest economy faces a contraction. West Texas Intermediate for August delivery, the contract with the largest open interest and volume, traded near $110 a barrel after a US holiday on Monday when there was no settlement. Biden said a recession isn’t inevitable, bolstering the outlook for energy consumption. He also said he’s aiming to decide this week whether to move to suspend the federal gasoline tax.
FTSE 100 live outlook prediction analysis for 21st June 2022
A decent performance from the bulls yesterday as they managed to push through the 7040 resistance which opened up a test of the 7100 and 7135 (200ema) levels. Overnight the gains have consolidated and with the US back today after the day off yesterday we may well see a bit more bullishness today.
However I wouldn’t be surprised if we have a small drop back first thing to test the 30m coral at 7110 which is now green so should lend some support if we do drop back. The 2h chart has also gone bullish with 7030 as support now, though I don’t think we will be getting that low today as the positivity from yesterday rolls into today. The Asian markets had a fairly upbeat session, as did the ASX with a dip and rise on that, hence thinking that we may well do something similar.
Below the 7110 support level the next one of note is the daily pivot at the 7069 level and we should see that hold if it were to get there. 7008 is then S1 and as its so close to the 7000 again, the bulls will not want to give up too easily having recaptured and pulled away from 7000 yesterday. Whilst I’m not thinking we get that low, we would more than likely see it defended strongly if we did.
The S&P500 is also looking more positive today to start with, again with a bullish 2h chart. 3660 support level looks key on that, though 3720 an 3702 are the higher supports to watch, from the 30m coral and the daily pivot respectively.
For the FTSE100, above the 7155 resistance level that has marked the overnight high, then R1 is net up at 7173, with the daily level of 7200 above that. 7234 is then R2.
Its worth noting that with yesterdays strength we have popped above the 10d Raff channels on the FTSE100, Dax40 and S&P500, which could be a fairly positive breakout if the bulls can make it stick and it doesn’t become a fake move. Bear Tuesday is a remote possibility today though with the US returning from a public holiday I am more inclined to go with a rise today.
So, could be another interesting day as we still have slightly choppy and nervous markets. Dip and rise looks to be the preferred pattern for today and am watching 7110 and 7070 as the main supports for a rise towards the 7200 level.
Good luck today.
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