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Bear Tuesday on the cards as oil climbs | 7615 7670 7690 resistance | 7560 7515 support

#1 · 7th June 2022, 10:15 am

Quote from Nick on 7th June 2022, 10:15 am
FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 ended the day higher, as investor sentiment was buoyed by more restrictions being eased in China. Over the weekend, Chinese media announced that Beijing restaurants and public transport would be allowed to reopen again after a strict lockdown.
The FTSE 100 ended the day up 1%, having also received a boost from a rally in commodity stocks. Wall Street was also sent higher by the loosening of restrictions in China, which have rattled global supply chains and hit the country's economy.
Stocks in Asia were mixed Tuesday in choppy trading as investors assessed the impact of a jump in Treasury yields on the outlook for earnings and the economy. The yen sank to a 20-year low.
Equities in Japan rose as the currency’s plunge on a widening interest-rate gap with the US provided a tailwind for exporters. Australia’s three-year yields soared and stocks extended a decline on a bigger-than-expected half-point hike by the central bank. China technology stocks fluctuated as traders sought clarity on the government’s regulatory stance. Hong Kong was steady and China rose. US and European futures dropped.
Asian currencies tumbled and the dollar gained as investors fled risk assets, including Bitcoin, which fell back below the $30,000 mark.
Treasuries were mostly steady after losses that sent five- and 10-year yields over 3% for the first time since mid-May ahead of a slew of new debt supply before crucial inflation data at the end of the week. The 10-year Treasury yield jumped more than 10 basis points as yields across the curve advanced at least seven basis points Monday.
The European Central Bank is set to announce an end to bond purchases this week and formally begin the countdown to an increase in borrowing costs in July, joining global peers tightening monetary policy in the face of hot inflation.
FTSE 100 live outlook prediction analysis for 7th June 2022
The bulls tried to go for the 7670 yesterday after managing to push through the 7630 resistance area, however they were dragged back by the bears and overnight we have dipped back below the 7600 level. Boris managed to survive the vote of no confidence as expected, though is now looking weaker so only a matter of time... The Prime Minister secured the support of 211 Tories against 148 rebels, prompting him to declare that it was time to “move on”.
With the overnight weakness we are starting with a slightly more bearish outlook and we may well get the usual bear Tuesday with shorting the rallies looking viable for today. Initial resistance is at the 7610 level where we have the daily pivot and the red 30m coral to start with. Above this then the bulls will be looking to target yesterdays high at 7647, and then the 7670 resistance level above that is still relevant.
If we get a decent dip today we may well see the bulls appear, especially if we dip down to the 25ema daily support level at 7515 currently. That level is also just below the S2 level so should hold. Below that then the daily coral is also green (showing an uptrend) with 7480 support. Not expecting that low today, even though the ASX200 had a significant drop today.
Initial support this morning is at the 7560 level where we have the key fib and the S1 level at 7565. If this holds then we may well get an initial rise to start the day off then the bigger drop from the 7610 area.
S&P500
The S&P500 will be keen to defend the 4085 level that its testing as I write this, and that should get a rise towards the 4125 level where we have the 30m coral and the 30m 200ema. A break lower will likely see 4071 with S2 here, and again, we should see the bulls defend any drop. Was a bit of a stop hurting spike up to 4170 yesterday prior to this drop - chop ahead of FOMC next Wednesday and more CPI on Friday. Interesting news on Bloomberg that we may be past peak inflation though, even though oil and energy prices continue to rise. Below 4071 then 4035 is next up with the bottom of the 10d Raff here, and also S3.
If the bulls break 4125 though then we should see a rise towards 4152 where we have the key fib.
Good luck today.
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FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

The FTSE 100 ended the day higher, as investor sentiment was buoyed by more restrictions being eased in China. Over the weekend, Chinese media announced that Beijing restaurants and public transport would be allowed to reopen again after a strict lockdown.

The FTSE 100 ended the day up 1%, having also received a boost from a rally in commodity stocks. Wall Street was also sent higher by the loosening of restrictions in China, which have rattled global supply chains and hit the country's economy.

Stocks in Asia were mixed Tuesday in choppy trading as investors assessed the impact of a jump in Treasury yields on the outlook for earnings and the economy. The yen sank to a 20-year low.

Equities in Japan rose as the currency’s plunge on a widening interest-rate gap with the US provided a tailwind for exporters. Australia’s three-year yields soared and stocks extended a decline on a bigger-than-expected half-point hike by the central bank. China technology stocks fluctuated as traders sought clarity on the government’s regulatory stance. Hong Kong was steady and China rose. US and European futures dropped.

Asian currencies tumbled and the dollar gained as investors fled risk assets, including Bitcoin, which fell back below the $30,000 mark.

Treasuries were mostly steady after losses that sent five- and 10-year yields over 3% for the first time since mid-May ahead of a slew of new debt supply before crucial inflation data at the end of the week. The 10-year Treasury yield jumped more than 10 basis points as yields across the curve advanced at least seven basis points Monday.

The European Central Bank is set to announce an end to bond purchases this week and formally begin the countdown to an increase in borrowing costs in July, joining global peers tightening monetary policy in the face of hot inflation.

FTSE 100 live outlook prediction analysis for 7th June 2022

The bulls tried to go for the 7670 yesterday after managing to push through the 7630 resistance area, however they were dragged back by the bears and overnight we have dipped back below the 7600 level. Boris managed to survive the vote of no confidence as expected, though is now looking weaker so only a matter of time... The Prime Minister secured the support of 211 Tories against 148 rebels, prompting him to declare that it was time to “move on”.

With the overnight weakness we are starting with a slightly more bearish outlook and we may well get the usual bear Tuesday with shorting the rallies looking viable for today. Initial resistance is at the 7610 level where we have the daily pivot and the red 30m coral to start with. Above this then the bulls will be looking to target yesterdays high at 7647, and then the 7670 resistance level above that is still relevant.

If we get a decent dip today we may well see the bulls appear, especially if we dip down to the 25ema daily support level at 7515 currently. That level is also just below the S2 level so should hold. Below that then the daily coral is also green (showing an uptrend) with 7480 support. Not expecting that low today, even though the ASX200 had a significant drop today.

Initial support this morning is at the 7560 level where we have the key fib and the S1 level at 7565. If this holds then we may well get an initial rise to start the day off then the bigger drop from the 7610 area.

S&P500
The S&P500 will be keen to defend the 4085 level that its testing as I write this, and that should get a rise towards the 4125 level where we have the 30m coral and the 30m 200ema. A break lower will likely see 4071 with S2 here, and again, we should see the bulls defend any drop. Was a bit of a stop hurting spike up to 4170 yesterday prior to this drop - chop ahead of FOMC next Wednesday and more CPI on Friday. Interesting news on Bloomberg that we may be past peak inflation though, even though oil and energy prices continue to rise. Below 4071 then 4035 is next up with the bottom of the 10d Raff here, and also S3.

If the bulls break 4125 though then we should see a rise towards 4152 where we have the key fib.

Good luck today.

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