ECB Press conference | 7022 7057 7103 resistance | 6969 6900 support | dip and rise

ECB Press conference | 7022 7057 7103 resistance | 6969 6900 support | dip and rise

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

FTSE 100 live outlook prediction analysis for 22nd July 2021

Todays big event is the ECB press conference at 13:30 this afternoon. As such we may well see some movement then, especially on the Dax.

Initially today I am thinking that we will see a dip and rise play out. The bulls will be keen to get the FTSE100 above the 7000 level with conviction and a rise towards the 7057 R1 level would help with that. Of note though is the 25ema on the daily at 7051 and we may well see some bearish reaction at this price area, and a dip back down from there. I have put the short order just above this level but keep an eye on this whole area.

Should the bulls push past the 7068 level then will likely see R2 at 7104 as we also have the top of the 10 day Raff channel in this area. Above this then the daily coral at 7142 is the next key level of note really and a rise to this would confirm that Monday was just a stop hunting bear trap day.

For the bears they will be looking to take the price down initially and we have key support from the 200ema and daily pivot at 6966. I am thinking that this level would hold those, otherwise the next ones of note are the key fib and S1 at 6922. The bulls wont be happy about losing the 7000 level though so would be keen to stage a fightback from here if it got that low.

A break lower though and the 2h supports are in play at 6891 for the green coral test and also coinciding with the Hull moving average at 6890. A break of this and the daily 200ema at 6780 is next up.

With the daily chart moving averages going bearish the ball is in the bulls court to reverse that, and that 7055 area is the key one for today. They will need to push above that. The 10 day Raff channel is heading down as well, so if Monday was a sign of things to come over the rest of the summer, the bears will likely be looking to pounce and 7055 is a good area. Also profit taking on this rise may kick in there too.

For the S&P the bulls need to defend the 4333 level where we have the S1 and 200ema levels, and below that the 2 hour supports at 4308 – Both a green coral and the Hull moving average are here so it would be key for the bulls to make this hold.

So lets see if we get a dip and rise play out today. Good luck today.

Asian Session

Asian stocks climbed Thursday after solid company earnings boosted Wall Street, easing concerns about peak economic growth and coronavirus flareups. The dollar held a decline.

An MSCI Inc. gauge of Asia-Pacific shares rose for a second day, led by cyclical sectors like materials and energy, though technology also pushed higher. Hong Kong and Australia outperformed, while Japan is shut for a holiday. U.S. futures edged up after the S&P 500’s biggest back-to-back advance in two months.

Ten-year Treasury yields headed toward 1.3% as the recent bond rally fizzled. A 20-year debt auction fared poorly. Cash Treasuries won’t trade in Asia due to the Japan holiday. Australia’s and New Zealand’s 10-year yields jumped.

Oil held a two-day gain to trade around $70 a barrel. Bitcoin hovered at $32,000 after getting a boost from prominent voices including billionaire Elon Musk, who said his space exploration company SpaceX owns the digital token.

Corporate performance and ongoing central bank policy support are tempering some of the concerns over peaking global growth and the spread of delta virus variant, which roiled markets at the start of the week. More than 85% of the S&P 500 firms reporting so far have beaten analysts predictions, according to data compiled by Bloomberg. U.S. earnings calls have also underlined the pick up in inflation, with many executives highlighting greater pricing power. [Bloomberg]

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