Quote from Nick on 4th August 2021, 11:08 am

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

FTSE 100 live outlook prediction analysis for 4th August 2021

We certainly got the bullish bias yesterday as the bulls managed to push to the 7120 level and it looks like we may well see further upside today. We also have an 8 point dividend on the FTSE100 to help as well (though larger ones next week and the week after) and for the moment the bulls remain in charge. BTFD continues to the be the play (buy the dip).

If we get an opening spike down to the pivot area at 7099 then this looks like it will provide decent support as we also have the Hull MA on the 2h chart here, though the first test was yesterday and held well at 7080. Initially the bulls have resistance at 7120 to break as we have the daily coral here - hence why we may well see a dip to start with. Then above that we have the key fib at 7149. Daily resistance at 7193 is still in play if the bulls manage to start breaking higher, and that may well tally with the daily S&P resistance at the 4444 level.

We also have the top of the 10 day Raff channel at 7205 for today and if the bulls do get their stakes on then we may well see this level. If things remain bullish then I don't think it will be long before we are back at the pre-covid highs.

For the bears, they will need to break the 7100 level to start with as that would open up a test of the 200ema at 7072 where we also have S1. As such should we see this level then I would expect it to hold, though below we have the key fib at 7055. With the 2h coral also at 7075 I do think any dips down to this area will get bought up.

With the bullishness recently the daily chart has gone positive again and we now have 25ema support at 7055 as well. Ergo this area should hold if seen as its another decent support at this price.

So generally remains looking bullish - with low summer volume chop still prevalent, but buying the dips still playing out well. The bulls certainly rebuffed a bear Tuesday yesterday!

Good luck today.

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Asian Session

Asian stocks edged up Wednesday as concerns over China’s latest technology clampdown eased and as traders weighed the spread of the delta strain of Covid-19. The dollar dipped.

Hong Kong stocks rallied after Chinese state media tempered language attacking gaming companies, bolstering Tencent Holdings Ltd. Shares slipped in Japan, where SoftBank Group Corp. retreated on a potential block of its $40 billion sale of Arm Ltd. to chip company Nvidia Corp. U.S. equity contracts fluctuated in the wake of a record S&P 500 close on robust earnings.

Investors continue to assess regulatory risks in China as Beijing pushes on with a crackdown on technology giants. Alibaba Group Holding Ltd.’s revenue missed estimates for the first time in over two years, a sign of the clampdown’s toll.

The 10-year U.S. Treasury yield held its retreat, while Japan’s 10-year yield fell to zero for the first time since December. Oil weakened toward $70 a barrel. The delta strain is exacerbating concerns that the rebound from the pandemic is losing steam. New Zealand jobs data strengthened rate-hike bets, bolstering its currency and sapping the 10-year bond.

Solid earnings have propelled U.S. and European shares to all-time highs, weathering the spread of the more contagious Covid-19 variant as well as a burst of inflation attributed to pandemic-linked bottlenecks. In comparison, the mood in Asia is more somber amid China’s regulatory broadsides and lagging vaccination rates that are delaying economic reopening across the region. [Bloomberg]

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