Quote from Nick on 1st November 2021, 11:18 am

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

A bullish day overall on Friday with the bulls defending the 7190 level and futures rising into this morning. The S&P500 has broken the 4600 level, with the 2h charts across the board suggesting a bull Monday is on the cards.

Most Asian stocks rose Monday after the outcome of Japan’s election bolstered expectations for fiscal stimulus and as all-time highs for U.S. shares encouraged some investor optimism. The yen weakened. Equities jumped almost 2% in Japan, where Prime Minister Fumio Kishida’s Liberal Democratic Party defied forecasts by preserving its outright majority. Stocks fluctuated in China amid data signaling economic weakness due to power shortages, surging commodity prices and Covid curbs. U.S. and European futures advanced following Friday records for the S&P 500 and Nasdaq 100.

China’s economy showed signs of further weakness in October as power shortages and surging commodity prices weighed on manufacturing. The official manufacturing purchasing managers’ index fell to 49.2, the National Bureau of Statistics said, the second month it was below the key 50-mark that signals a contraction in production. The non-manufacturing gauge, which measures activity in the construction and services sectors, dropped to 52.4, well below the consensus forecast. Meanwhile, cracks are beginning to show in China’s policy of stamping out all traces of Covid as soon as it appears. But Beijing remains committed to “Covid-zero,” at least through the Winter Olympics that begin in in February.

FTSE 100 live outlook prediction analysis for 1st November 2021

With the dip and rise playing out on Friday it does look like we will see some more upside flow into today. Initial support on the FTSE100 is around the 7240 level as we have some positive supports on the 30m here, namely the coral, 200ema and daily pivot. The 2 hour chart is also bullish after that strength on Friday, and we have decent support at 7251 to start with from that. We have already had a little dip down to near that level and seen a positive reaction already.

We may see another initial drop down then a rise for today if we see a bull Monday play out.

Initial resistance is at the 7288 level where we have the key fib for today, and just above the daily resistance at 7281. As such we could see a reaction here, or possibly the bulls struggle to push past this, at least initially.

The S&P looks bullish also but we have key resistance at the 4624 level with R1 and just above the key fib at 4621. As such, as with the FTSE100, we may see the bears get a reaction here and a bit ion a stutter.

As those resistance levels look fairly strong the bulls will be desperate to break above them, as in the case of the S&P that would lead towards the 4700 level. The daily Raff channels are all heading up across the board so it will be interesting to see how much further this bull run has to run. Certainly still looks positive for a strong year end with the buy the dip still working well.

Above the 7288 level then R2 is at 7301, and a break of that will certainly bode well for the bulls as its also the round number. The top of the 10 day Raff channel is 7342 so keeping an eye on that area as the next one of note.

If the bears were to break below the 7232 daily pivot then a retest of Fridays low at 7189 (cheeky overshoot of that 7210 support level that was) would likely play out, and we also have the key fib at 7194 here. As such a break of this would get the 2h chart bearish again I suspect and a slide down to 7163 S2 would likely play out. Not sure that we will get that low today though as it looks more optimistic than that.

Good luck today, watch 7240 for support, 7280 and 7301 for resistance.