Dust settles and a rise to 7635 on the cards | 7570 support | NFP tomorrow – buy the rumour

Dust settles and a rise to 7635 on the cards | 7570 support | NFP tomorrow - buy the rumour

FTSE 100 live outlook prediction analysis for 9th January 2020

Markets settled on Wednesday after Donald Trump said no US troops were hurt during an overnight attack by Iran on an American base. Here are some of the days main events:

  • Markets rallied after Trump said no US troops were harmed by rocket attack
  • President called for NATO to step up in Middle East peace process
  • Oil and gold prices fell as markets returned to risk-on mode

With the FTSE grabbing the smallest of gains, top European markets ended in the green Wednesday, with Donald Trump giving stock an extra boost in the absolute dying minutes. We might see more bullishness today to get back above the 7600 level. The bulls need to defend the 7569 level.

Backing Away

President Donald Trump backed away from the precipice of war with Iran after the Islamic Republic attacked U.S. bases in Iraq with a barrage of missiles the Pentagon believes was intended to cause no casualties. In televised remarks to the nation on Wednesday, Trump defended the U.S. strike on a top Iranian general that touched off the missile barrage and said he would impose new sanctions on Tehran. But he also offered the country’s regime a diplomatic opening. Any new nuclear deal, he said, must allow “Iran to thrive and prosper, and take advantage of its enormous untapped potential. Iran can be a great country.”  Oil slumped below $60 a barrel and gold fell. U.S. stocks advanced and Asian equities are primed to follow those moves higher when Thursday trading begins.



FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

If gold breaks below the 1550 level then a drop down towards 1527 looks likely and in turn that would suggest that we are on for further upside on the indices. The war rhetoric has died down, and may well amount to nothing more than we have seen now, hence the rise on markets yesterday afternoon. We could well see a rise on the S&P towards the 3285 level this week, especially ahead of NFP numbers tomorrow and if we get another large beat.

FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

On the FTSE for today we once again have a bullish 2 hour chart with support at 7569 and if we were to drop down to this area then I am thinking that a long here is worth a go. Hopefully things settle down for a bit now and the news driven sentiment lurching from greed to fear calms down a bit. We also have a couple of decent looking 30min supports at the 7580 level with the coral and 200ema on the 30min here, and as such, buying the dip feels like the best play. Especially if we don’t get any more rockets lobbed around! Should the bears break below 7560 though then a drop down towards the 7500 level again looks possible, while the recent low and bottom of the 10 day Raff channel at 7465 is possible. That said the daily cart remains bullish and the 25mea at 7510 now suggest further upside.

7573 is the gap close price and we may well see an initial dip targeting this level as well.

The top of the 10 day Raff channel is at 7635 for today and we may well see an initial stutter here this morning, as we also have R1 at 7642. The key fib resistance is at 7617 and just above the overnight high, so if there is any fear around these areas are were we are likely to see a stumble. The bulls will of course be keen to recapture 7600 and hold above it. Should they push past the 7642 level, and gold did decline then we could well be heading for 7700+, with the S&P keen to test the 3300 level soon.

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