FTSE 100 live outlook prediction analysis for 6th October 2020
The FTSE 100 rose moderately Monday, with struggling engine-maker Rolls-Royce leading risers, climbing 9.8p to 123.4p. The group experienced something of a “dead cat bounce” after heavy losses over recent weeks. The 5920 support level held well, though the rise only managed to get to 5965. The S&P meanwhile pushed on to the 3410 resistance level, once it had broken 3380, as Trump’s miraculous recovery in a short space of time played out.
Britain’s housebuilders also gained ground after Boris Johnson pledged to “fix” the problem of unaffordable deposits and get more young people on the property ladder.
Cineworld’s shares plunged as it confirmed plans to temporarily close its UK and US cinemas after big studios started to delay their major film releases to wait for larger audiences.
Sales of new cars in the normal boom month of September have fallen to their lowest level in more than 20 years as coronavirus continues to ravage the automotive sector.
Going Home
President Donald Trump’s aides will try to keep him confined to the White House residence following his discharge from hospital, but are unsure they can limit his movements, according to people familiar with the matter. Trump urged Americans not to fear Covid-19 after receiving medical care including three powerful medicines and an airlift to the hospital. “Don’t let it dominate your life,” Trump tweeted Monday afternoon, before he walked out of the hospital unassisted. “We have developed, under the Trump Administration, some really great drugs & knowledge. I feel better than I did 20 years ago!” Trump’s physician Sean Conley said coronavirus patients can stop shedding the virus in as few as five days after diagnosis and that Trump would be monitored to determine when he is no longer infectious. The White House plans for Trump to stay in the residence for a few days before returning to normal, one of the people familiar with the matter said.
Markets Rally
Asian stocks looked set to follow their U.S. peers higher amid optimism that President Donald Trump will leave the hospital and lawmakers will move closer to providing more stimulus. Treasury yields jumped and the dollar weakened. Futures pointed to modest gains in Japan, Australia and Hong Kong. U.S. stocks closed at the highest levels of the day rebounding from Friday’s swoon in the wake of Trump’s coronavirus disclosure. Energy, health care and technology shares were the biggest gainers in the S&P, pushing the benchmark index up by the most in almost four weeks. The longest-maturity Treasury yield surged to a three-month high as traders adjusted their election bets after Joe Biden’s latest poll numbers. Elsewhere, crude oil rebounded from a three-week low and gold advanced.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Most Asian stocks followed their U.S. peers higher after President Donald Trump’s departure from hospital eased concerns about his health, and amid optimism that lawmakers will move closer to providing more stimulus. The dollar remained under pressure and Treasuries steadied.
Stocks saw modest gains in Japan, South Korea and Hong Kong. S&P 500 contracts ticked higher after U.S. stocks closed at the highest levels of the day. Nasdaq futures fluctuated on reports a House panel may propose sweeping reforms of the technology sector. Treasury yields held Monday’s gains after surging as traders adjusted their election bets following Joe Biden’s latest poll numbers.
The S&P has stalled at the 3410 level and could do with a small drop back before pushing back up higher, and we now have 3390 as 2 hour support from the Hull moving average, along with the daily pivot here. As such we may well see a dip and rise day play out on that, and also on the FTSE 100 today. I have put the order at 3390, but it s bit speculative as we may well head down toward the 3370 area instead and possibly the daily support at 3366..
The bulls didn’t really push on much past the 5957 daily resistance level yesterday and we are still around this area initially this morning.
As such, I am thinking that we will see a drop down to test the 200ema and fib level at the 5915 area this morning before another push up later. Especially if the S&P defends the 3390 level. With yesterday’s rises across the board, the 2 hour chart has also gone bullish for the FTSE and has 5916 as support from the moving average, and the coral is now green with support at 5896. If we did drop down here then I am thinking that this area will hold. Would also cool the RSI a little bit as that is at 52 currently, ready for a push higher.
Below the 5900 support level then 5890 is close with S2, and then 5862 for S3 below that. However, if the S&P pushed down below the 3378 level which is the green 2 hour coral it may well weaken the bulls and we will see a slide back towards the 3300 level – and that will inevitably pull the FTSE back down with it. Talking of the S&P, we also have a red daily coral for resistance at 3443 now so watch that area for a reaction too.
For the FTSE bulls, they will be looking to break the 6010 level as we have R2 here, and it is just above the cluster of resistance I have at the 5985-5995 area. I have put the order at this R2 level as it might well try for the 6000 and have a fake break above, but anywhere around here for trying some shorts would make sense. Above the 6010 level then R3 is at 6045 and then above that, we start looking at the top of the Raff channels again, with them at 6080-6100. Don’t think we will get that high today but maybe later this week.
So, looking for a dip and rise day today, bit of a bear Tuesday initially. Be interesting to see how the US markets react to Trumps departure from hospital as well. Good luck today, watch the 5910 area for support, 5990 to 6010 for resistance.
Recommended Broker
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
Keep up to date with new content, free sign up below
[yikes-mailchimp form=”4″]