Discussion Forum for trading analysis, help, signals and trading

Discussion Forum for trading analysis, help, signals and learning how to trade. Chat with other traders , post analysis, trades and ask questions. This is the public part of my website. For more in-depth discussions please consider joining to chat with other members

Forum Navigation
Please or Register to create posts and topics.

Are we on for a bear Tuesday | 7300 fails to hold | 7255 7241 7220 support | 7297 7336 resistance

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

A test but failure to hold the 7300 level yesterday for the FTSE100. Bull Monday in good effect though the S&P500 resistance level of 4625 held well and the bears dropped it from there. That said, the 4600 area has held overnight so any further push from the bulls above the 4616 30m resistance today will likely see it retested. Can they push towards 4700!?

Most Asian stocks fell Tuesday as traders digested the latest coronavirus curbs in China and awaited key central bank decisions amid concerns about elevated inflation. The yen strengthened.

Shares slid in China, where authorities in Beijing halted classes at 18 schools in one district after a teacher was infected with Covid-19. The investor mood was a little brighter in Hong Kong, aided by a jump in the city’s index of Chinese technology stocks. U.S. and European futures wavered following an overnight record on Wall Street.

After some recent wobbles, investor confidence has been buoyed by strong recent earnings data, with nearly 80pc of companies on the top index coming in ahead of expectations for the third quarter according to data compiled by Bloomberg.

Meanwhile, the Dow Jones Industrial Average has briefly broken above 36,000.

The S&P 500 is up 6pc since October 13th – the biggest gain over such a period since 2014.

FTSE 100 live outlook prediction analysis for 2nd November 2021

The FTSE100 has held up well overnight and not dropped too much from the 7300 level so far. That said the 30m chart is bearish to start with so we may well get a bear Tuesday kick in initially. There is decent support at the 7260 area and we have the green 2h coral support line here so I would like to see a drop to this defended for a push back up past the 7300 level.

The S&P500 bulls need to break the 4625 level, and to do so they will need to defend any drop. There is key support initially at the 4595 level, but the 4588 level looks key as well as we have the 200ema here. If they can hold this then we should see another leg up still, and possibly even manage a push towards the 4700 level. That said, we are a bit overbought and also the fear/greed indicator is currently on 77/100 "Extreme Greed" so a bit of caution with the longs is wise. They need to break 4616 to start with as we have the red 30m coral here.

The FTSE bears will be looking to break below the 7255 level as that opens up a likely move down to the 25ema on the daily at 7200 and we also have the bottom of the 10d Raff here - so we may well see a hold of this. A drop back would of course alleviate some of the overbought conditions too. 7210 is S3 for today so should we drop that far there is scope for it to hold.

For the bulls, they will be looking to break 7300 and make it stick this time. That said, the 30min coral is about to go red with 7297 resistance so we could see them have their work cut out here. Above the 7300 level then the key fib is 7336 and a level that I think we could rise too if the bulls break 7300. That's also just below R2 (7341).

The top of the 10 day Raff channel is at 7369 and I don't think that we will get that high today but as mentioned yesterday the trends remain heading up not he longer time frame charts.

So, possibly a bit more of a consolidation day today. The S&P500 will be looking to hold onto the supports to break higher, and the 2h charts for the S&P, FTSE100 and Dax all remain bullish for the moment. Buy the dip to continue for a bit longer still! We have the Fed tomorrow and the BOE on Thursday as well with rate news releases.

Good luck today.

(adsbygoogle = window.adsbygoogle || []).push({});

Recommended Broker


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 and Live Trading

If you would like more detailed analysis for FTSE 100, 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 FTSE, DAX, Gold and S&P.
  • 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

[yikes-mailchimp form="4"]