Fearful markets | 7488 7592 resistance | 7411 7366 support | Bank worries persist

Fearful markets | 7488 7592 resistance | 7411 7366 support | Bank worries persist

FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 27th March 2023

Asian shares struggled on Monday while U.S. and European stock futures edged higher on hopes authorities were working to ring fence stress in the global banking system, even as the cost of insuring against default neared dangerous levels.

Back from my holiday now so a bit more detail for the morning email! Was quite the week to miss – bank chaos, more rate rises and a general air of panic and fear. A good time to start buying! Don’t forget the past year seasonal chart suggests a mid March dip then a rise towards May – SPX one here

For today I am expecting the news that SVB has been bought to have a bit of a positive effect, at least initially. Deutsch Bank the next one on the ropes though as with CS they have been in the past too. Gold continues to front run and has once again failed to hold above 2000 and dropping back further – suggesting more equity strength looming.

For the FTSE100, initial resistance is at the 7490 area where we have the R1 level and also the key fib. Just below this would be a test of the 30m 200ema at 7465. As such we may see an initial rise later in this area for a drop back down to test the support level that looks key at 7400.

7486 is also the now red 2h coral and also ties in with the Hull MA on this timeframe but whilst that is the first test of the coral, it isn’t the first test of the Hull MA line – keep an eye on this level and if it starts to react then worth shorting around here.

Above 7492 R1 we have 7555 R2 and then if it gets really optimistic today for a bull Monday the daily level at 7592. Seems a big ask but with the volatility we currently have not completely out of the question.

Support wise, then 7400 area as mentioned – the daily pivot is 7411 and then the 30m coral at 7402 and slowly rising. Should the bears break below the 7400 level then Fridays low at 7340 is next up, and worth keeping an eye on. The bulls will be keen to start fighting back for sure, though a lot will depend on the news flow. Be fearful when others are greedy but greedy when others are fearful as they say….

So, looking a bit more positive if the bulls can break 7490 and we may well see the fear subside a bit this week…. possibly!

Good luck today.

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