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

ForumTrading Forum with market discussion and live trades: Market DiscussionBears come roaring back | 7100 ca …

Please or Register to create posts and topics.

Bears come roaring back | 7100 cant hold | 6968 6928 6858 support | 7000 7025 7043 resistance

#1 · 19th May 2021, 8:29 am

Quote from Nick on 19th May 2021, 8:29 am
FTSE 100 live outlook prediction analysis for 19th May 2021
The Bank of England prevented a financial “meltdown” last year which would have seen businesses and families cut off from borrowing, according to Andrew Bailey, the Bank’s Governor. His £200bn programme of quantitative easing (QE) in March 2020, which ramped up purchases of Government bonds at an unprecedented pace, injected liquidity into markets as Covid struck.

He denied suggestions that it was designed to fund Government spending, instead telling the House of Lords that his actions in the bond markets were purely to help the wider economy.
Both the pound and the FTSE lost ground yesterday, with the FTSE 100 failing to build on the move to 7100. Overnight it has moved below the psychological 7000 level as well after a weak close on the US markets just before the bell. Can the S&P defend the 4100 level? 4150 is the resistance level in play now.
Lines of Defense
Singapore will stretch out uts Covid vaccine supply by lengthening the time between doses to as much as eight weeks, a move that could see its entire adult population receive a first shot by the end of August. In Taiwan, cases have surged from zero to quadruple digits in just days: Here’s how complacency broke down its only line of defense. Thailand plans to borrow$22 billion to counter its worst coronavirus outbreak yet. Mumbai has reported about a quarter the number of deaths that New Delhi has suffered in India’s latest wave. And in the U.S., rural counties significantly lag urban ones in vaccine coverage while Texas has banned local governments and schools from mandating mask-wearing.
Tracking U.S. Declines
Asian stocks on Wednesday are set to track U.S. declines as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge was near the lowest level this year. Futures slipped in Japan and Australia and U.S. futures dipped as they opened in Asia. A slide in crude on the possibility of more supply from Iran hurt energy stocks. The dollar retreated further and Treasury yields dipped. Markets are closed Wednesday in Hong Kong and South Korea for holidays.[Bloomberg]
(adsbygoogle = window.adsbygoogle || []).push({});
US & Asia Overnight from Bloomberg
Asian stocks tracked U.S. declines Wednesday as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge traded near the lowest level this year.
Australia underperformed, with the benchmark on track for its worst day in almost three months. Shares also fell in Japan and China after key U.S. equity benchmarks closed lower and large technology stocks like Amazon.com Inc. and Microsoft Corp. erased gains. AT&T Inc. plunged after the company said it plans to spin off its media operations. S&P 500 and Nasdaq 100 futures were in the red along with European contracts.
A slide in crude on the possibility of more supply from Iran hurt energy stocks. Treasury yields were steady. Bitcoin and other cryptocurrencies extended a retreat after the People’s Bank of China conveyed a statement reiterating that digital tokens can’t be used as a form of payment. Markets are closed Wednesday in Hong Kong and South Korea for holidays.
Stocks have been volatile after touching a record in early May, whipsawed by concerns about accelerating inflation amid elevated commodity prices, as well as a Covid-19 resurgence in some countries. Federal Reserve officials have repeatedly indicated that they see recent price pressures as transitory and intend to keep policy accommodative for some time to come. Traders are awaiting the latest Fed minutes for the clues about the outlook.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
With the drop off yesterday from the 7100 area, we may well see the bears continue to press their advantage,. The 2 hour chart has gone bearish again with 7045 resistance on that for today, so any rise to this area is worth a short. Initially I am thinking that the bulls will be keen to regain 7000 and as we are nearly at S1 to start with we may see an initial kick up.
Initial resistance on the 30m chart has the 25ema at 7000 so we could see any early rise stutter here, but above this we have the 200ema and a now red coral at the 7023 and 7028 levels respectively. If we get a rise later to this area then a short here ties in with the 2 hour resistance as well.
For the S&P, it broke below the 2h coral line yesterday evening at 4130, and as with the FTSE the bulls will be keen to hold the 4100 level. If they do then we may well see a rise towards the 4145 level where we now have resistance on that. S1 is at 4097 as well to start with.
I would like to see S1 hold on the FTSE at 6969 for today as a break of that will likely see a slide down towards the 6927 S2 level, but also ultimately the daily support at 6858 where we have the bottom of the 20d Raff. That actually coincides with S3 as well (6858) so a possible bounce could set up in this area if we were to have a really bearish day today. I don't think that we will shed nearly 200 points today though but keep an eye on this level, possibly for tomorrow.
If the bulls were to break above the 7045 level then 7080 is the key fib and the R1 level for today, so would be the next likely area that they would take it too. Against the currently bearish outlook that might be a big ask though. The ASX200 was pretty bearish today and as that is also fairly commodity oriented as is the FTSE100, we may struggle to get too bullish today.
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
Keep up to date with new content, free sign up below
[yikes-mailchimp form="4"]

FTSE 100 live outlook prediction analysis for 19th May 2021

The Bank of England prevented a financial “meltdown” last year which would have seen businesses and families cut off from borrowing, according to Andrew Bailey, the Bank’s Governor. His £200bn programme of quantitative easing (QE) in March 2020, which ramped up purchases of Government bonds at an unprecedented pace, injected liquidity into markets as Covid struck.

He denied suggestions that it was designed to fund Government spending, instead telling the House of Lords that his actions in the bond markets were purely to help the wider economy.

Both the pound and the FTSE lost ground yesterday, with the FTSE 100 failing to build on the move to 7100. Overnight it has moved below the psychological 7000 level as well after a weak close on the US markets just before the bell. Can the S&P defend the 4100 level? 4150 is the resistance level in play now.

Lines of Defense

Singapore will stretch out uts Covid vaccine supply by lengthening the time between doses to as much as eight weeks, a move that could see its entire adult population receive a first shot by the end of August. In Taiwan, cases have surged from zero to quadruple digits in just days: Here’s how complacency broke down its only line of defense. Thailand plans to borrow$22 billion to counter its worst coronavirus outbreak yet. Mumbai has reported about a quarter the number of deaths that New Delhi has suffered in India’s latest wave. And in the U.S., rural counties significantly lag urban ones in vaccine coverage while Texas has banned local governments and schools from mandating mask-wearing.

Tracking U.S. Declines

Asian stocks on Wednesday are set to track U.S. declines as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge was near the lowest level this year. Futures slipped in Japan and Australia and U.S. futures dipped as they opened in Asia. A slide in crude on the possibility of more supply from Iran hurt energy stocks. The dollar retreated further and Treasury yields dipped. Markets are closed Wednesday in Hong Kong and South Korea for holidays.[Bloomberg]

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

US & Asia Overnight from Bloomberg

Asian stocks tracked U.S. declines Wednesday as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge traded near the lowest level this year.

Australia underperformed, with the benchmark on track for its worst day in almost three months. Shares also fell in Japan and China after key U.S. equity benchmarks closed lower and large technology stocks like Amazon.com Inc. and Microsoft Corp. erased gains. AT&T Inc. plunged after the company said it plans to spin off its media operations. S&P 500 and Nasdaq 100 futures were in the red along with European contracts.

A slide in crude on the possibility of more supply from Iran hurt energy stocks. Treasury yields were steady. Bitcoin and other cryptocurrencies extended a retreat after the People’s Bank of China conveyed a statement reiterating that digital tokens can’t be used as a form of payment. Markets are closed Wednesday in Hong Kong and South Korea for holidays.

Stocks have been volatile after touching a record in early May, whipsawed by concerns about accelerating inflation amid elevated commodity prices, as well as a Covid-19 resurgence in some countries. Federal Reserve officials have repeatedly indicated that they see recent price pressures as transitory and intend to keep policy accommodative for some time to come. Traders are awaiting the latest Fed minutes for the clues about the outlook.

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

With the drop off yesterday from the 7100 area, we may well see the bears continue to press their advantage,. The 2 hour chart has gone bearish again with 7045 resistance on that for today, so any rise to this area is worth a short. Initially I am thinking that the bulls will be keen to regain 7000 and as we are nearly at S1 to start with we may see an initial kick up.

Initial resistance on the 30m chart has the 25ema at 7000 so we could see any early rise stutter here, but above this we have the 200ema and a now red coral at the 7023 and 7028 levels respectively. If we get a rise later to this area then a short here ties in with the 2 hour resistance as well.

For the S&P, it broke below the 2h coral line yesterday evening at 4130, and as with the FTSE the bulls will be keen to hold the 4100 level. If they do then we may well see a rise towards the 4145 level where we now have resistance on that. S1 is at 4097 as well to start with.

I would like to see S1 hold on the FTSE at 6969 for today as a break of that will likely see a slide down towards the 6927 S2 level, but also ultimately the daily support at 6858 where we have the bottom of the 20d Raff. That actually coincides with S3 as well (6858) so a possible bounce could set up in this area if we were to have a really bearish day today. I don't think that we will shed nearly 200 points today though but keep an eye on this level, possibly for tomorrow.

If the bulls were to break above the 7045 level then 7080 is the key fib and the R1 level for today, so would be the next likely area that they would take it too. Against the currently bearish outlook that might be a big ask though. The ASX200 was pretty bearish today and as that is also fairly commodity oriented as is the FTSE100, we may struggle to get too bullish today.

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

Keep up to date with new content, free sign up below

[yikes-mailchimp form="4"]