FTSE 100 prediction and analysis for today 6th July 2023
FTSE 100 - Prediction - The FTSE 100 closed 1.03pc lower at 7,442.10, while the FTSE 250 index mid-cap index dropped down 0.76pc to 18,393.33. The London Stock Exchange was weighed down after disappointing eurozone and Chinese economic data heighted concerns of a global slowdown.
Equity benchmarks across Asia fell on Thursday with Hong Kong shares leading the losses in a broad, risk-off move across global markets. The Hang Seng Index tumbled as much as 3.2% while benchmarks in Japan and Australia fell more than 1%. A gauge representing Chinese firms in Hong Kong also dropped. US equity futures fell, compounding the S&P 500’s losses on Wednesday.
While almost all Fed officials agreed to hold interest rates steady last month, minutes of the meeting released on Wednesday showed the vast majority expected policy would eventually need to tighten further. Money market traders place 85% odds on a quarter point hike on July 26, and about a 50/50 chance of another by November.
FTSE 100 prediction
We are just sat on S&P500 support to start with as I write this at the S1 4430 level and just below S1 on the FTSE100. As such we may well see the bulls quick out the blocks this morning and try and get an early bounce in at the bell. If they manage that then a rise towards the daily pivot at the 7468 level may well play out.
That said, there is also a chance that we get a quick flush down to the next daily support level at 7380 which also coincides with S2 for today. Tag some more stops after the recent rise probably! As such, I like this level for a long, again for a bounce up to the daily pivot.
If the bears were to break below the 7380 level then we will more than likely see them capitalise and take it down to the S3 7321 level, which is also the lower daily support. We are just dipping below the 10d Raff channel initially this morning so a test of the 20d Raff at 7330 could be possible though feel unlikely today.
With the SPX on its support though and the FTSE 100 at 7400 we may not even see any of those supports!
Resistance wise, then the daily pivot as mentioned is the first up, 7468, then 7500 and 7520 are showing on the 2h as the Hull and coral respectively. The 2h coral has also now gone red.
If the bulls were to break 7520 then 7558 R2 would be the next level of note but that may be a bit optimistic for today. However the recent patterns of the weak start to the trading week, and then starting to rally on Thursday and Friday may well play out.
On the news front we have the US ISM Services PMI at 15:00, forecasted to improve slightly at 51.
If the S&P500 bulls can defend the 4430 level then we have a decent W shape forming (a double bottom basically) within the bull flag for this week. As such that all looks quite bullish. A rise to test the 4469 level where we have the Hull MA on the 2hr chart as resistance would therefore work well.
Good luck today.
Interested in spread betting the FTSE 100? What is it, how does it work and how do you do it? Read more here
Recommended Broker for FTSE 100 trading
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, Trading Tips and Live Trading
If you would like more detailed analysis for FTSE100, 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 FTSE100, DAX40, Gold and S&P500.
- 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 with just your email address
