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Bears gain a bit of strength with 7560 7599 7631 resistance | 7528 7496 support

#1 · 9th June 2022, 10:05 am

Quote from Nick on 9th June 2022, 10:05 am
FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE 100 dips 0.3% on Wednesday
Stocks fell Thursday and bonds were again on the back foot, weighed down by the impact of high inflation.
A fizzling rally in Chinese tech shares contributed to a drop in an Asia-Pacific equity index. US futures dipped after Wall Street snapped a two-day climb.
An advance in oil past $122 a barrel has stoked worries about rising costs and monetary tightening. Sentiment also took a knock after Shanghai said it will lock down a district on Saturday morning for Covid testing -- the first major movement restriction since the city exited curbs earlier this month.
Benchmark Treasury yields pushed further above 3%, while New Zealand’s 10-year yield touched the highest level in seven years.
The dollar-yen pair is dominating foreign-exchange markets, with the weakness in Japan’s currency putting the 2002 high of 135.15 in play. China could see the trend as an unfair competitive advantage, said Jim O’Neill, former chair of Goldman Sachs Asset Management.
Data in China showed exports grew at a faster pace in May than the previous month as Covid-related disruptions eased. The offshore yuan strengthened.
Petrol Prices
Average petrol prices jumped more than 2p in just 24 hours – the biggest daily increase in 17 years – to over £1.80 a litre as Russia’s war in Ukraine continues to drive up wholesale costs. The RAC yesterday warned motorists to brace for prices hitting £2 a litre after Goldman Sachs forecast average oil prices of $135 a barrel for the rest of the year.
Influence in Asia
US officials increasingly see China losing diplomatic ground in Asia as Pentagon chief Lloyd Austin heads to Singapore for a regional security forum that will include a meeting with a top Chinese defense official. They say China has provided an opening for the US to solidify ties in Asia, in large part because of Xi Jinping’s insistence on Covid-zero policies, as well as a growing backlash against China’s assertive foreign policy.
FTSE 100 live outlook prediction analysis for 9th June 2022
Bit too early with the Dax and FTSE100 longs yesterday but the S&P bulls put in a decent bounce from the 4130 level to gain some points. However, the bears took control and overnight the weakness has continued and with the FTSE100 slipping a bit further away from the 7600 level. The S&P is closing in on the key 4100 support too.
Initially today we have support at the 7532 level with S1 and the key fib here, so we could see this hold initially though it does look like we are on for a slide down to the 7500 level where we have S2. A fake break beleot he 10 day Raff channel too?!
This drop back does enable the price to test the 25ema on the daily chart which usually acts as support, and that is at 7523 for today. It will be interesting to see if there is any defence of this area today. Below the 7500 level then the bears will be targeting 7453 daily support and 7444 S3.
The 2h chart has gone bearish as you would expect and has resistance for today at the 7600 level, with the Hull MA here, and also the now red coral line. As such, any rally to this area may well see the bears appear here. 7585 is also the daily pivot and the 30m 200ema, so it does look like we may see a sell the rally day again.
S&P500
The S&P has weakened too and the bulls will need to get the price above the 4125 Hull MA on the 2h to change the picture. The bears will be looking to break below the 4100 level though as with S1 at 4097 and the key fib also here, its key support to start with. If we test that on the futures first thing (especially if the FTSE100 does dip to start the day) we may well see a bounce here to get towards the 4125ish area.
Interestingly, the S&P has just tested its 25ema daily support level, since that chart timeframe went bullish. That is at this 4106 level so if we do the bulls start to appear in earnest today then we may well get a few sessions of bullishness ahead. That 4100 support is key though today.
So, looking like a dip and rise and dip again for the FTSE100 today, and I am watching that 7500 level for decent support, likewise 4100 for the S&P.
Good luck today.
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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
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FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE 100 dips 0.3% on Wednesday

Stocks fell Thursday and bonds were again on the back foot, weighed down by the impact of high inflation.

A fizzling rally in Chinese tech shares contributed to a drop in an Asia-Pacific equity index. US futures dipped after Wall Street snapped a two-day climb.

An advance in oil past $122 a barrel has stoked worries about rising costs and monetary tightening. Sentiment also took a knock after Shanghai said it will lock down a district on Saturday morning for Covid testing -- the first major movement restriction since the city exited curbs earlier this month.

Benchmark Treasury yields pushed further above 3%, while New Zealand’s 10-year yield touched the highest level in seven years.

The dollar-yen pair is dominating foreign-exchange markets, with the weakness in Japan’s currency putting the 2002 high of 135.15 in play. China could see the trend as an unfair competitive advantage, said Jim O’Neill, former chair of Goldman Sachs Asset Management.

Data in China showed exports grew at a faster pace in May than the previous month as Covid-related disruptions eased. The offshore yuan strengthened.

Petrol Prices
Average petrol prices jumped more than 2p in just 24 hours – the biggest daily increase in 17 years – to over £1.80 a litre as Russia’s war in Ukraine continues to drive up wholesale costs. The RAC yesterday warned motorists to brace for prices hitting £2 a litre after Goldman Sachs forecast average oil prices of $135 a barrel for the rest of the year.

Influence in Asia
US officials increasingly see China losing diplomatic ground in Asia as Pentagon chief Lloyd Austin heads to Singapore for a regional security forum that will include a meeting with a top Chinese defense official. They say China has provided an opening for the US to solidify ties in Asia, in large part because of Xi Jinping’s insistence on Covid-zero policies, as well as a growing backlash against China’s assertive foreign policy.

FTSE 100 live outlook prediction analysis for 9th June 2022

Bit too early with the Dax and FTSE100 longs yesterday but the S&P bulls put in a decent bounce from the 4130 level to gain some points. However, the bears took control and overnight the weakness has continued and with the FTSE100 slipping a bit further away from the 7600 level. The S&P is closing in on the key 4100 support too.

Initially today we have support at the 7532 level with S1 and the key fib here, so we could see this hold initially though it does look like we are on for a slide down to the 7500 level where we have S2. A fake break beleot he 10 day Raff channel too?!

This drop back does enable the price to test the 25ema on the daily chart which usually acts as support, and that is at 7523 for today. It will be interesting to see if there is any defence of this area today. Below the 7500 level then the bears will be targeting 7453 daily support and 7444 S3.

The 2h chart has gone bearish as you would expect and has resistance for today at the 7600 level, with the Hull MA here, and also the now red coral line. As such, any rally to this area may well see the bears appear here. 7585 is also the daily pivot and the 30m 200ema, so it does look like we may see a sell the rally day again.

S&P500
The S&P has weakened too and the bulls will need to get the price above the 4125 Hull MA on the 2h to change the picture. The bears will be looking to break below the 4100 level though as with S1 at 4097 and the key fib also here, its key support to start with. If we test that on the futures first thing (especially if the FTSE100 does dip to start the day) we may well see a bounce here to get towards the 4125ish area.

Interestingly, the S&P has just tested its 25ema daily support level, since that chart timeframe went bullish. That is at this 4106 level so if we do the bulls start to appear in earnest today then we may well get a few sessions of bullishness ahead. That 4100 support is key though today.

So, looking like a dip and rise and dip again for the FTSE100 today, and I am watching that 7500 level for decent support, likewise 4100 for the S&P.

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