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Bull Monday on the cards | 7230 7267 7305 resistance | 7150 7130 7078 support

#1 · 18th July 2022, 10:11 am

Quote from Nick on 18th July 2022, 10:11 am
FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 ended the week lower on worries about aggressive interest rate hikes and a sharp slowdown in the global economy, even as energy and defensive stocks propped up the index earlier today The benchmark added 1.7pc, supported by energy giant Shell, AstraZeneca and British American Tobacco . The FTSE 250 gained 1.9pc.
Stocks and US equity futures rose Monday amid scaled back bets on how aggressively the Federal Reserve will hike interest rates and as investors assessed Chinese pledges to shore up economic growth.
A gauge of Asian shares added more than 1%, boosted by a jump in Chinese technology firms. S&P 500, Nasdaq 100 and European contracts pushed higher following a Wall Street rally Friday. Japan is shut for a holiday.
Asian shares inched higher on Monday following a much-needed bounce on Wall Street, but nerves are stretched ahead of a near-certain interest rate hike in Europe and another round of corporate earnings reports.
It is shaping up to be a fraught week for Europe as it waits anxiously to see if Russia resumes the flow of gas through the Nord Stream 1 pipeline on July 21, while Italy teeters on the brink of political turmoil should Prime Minister Mario Draghi go ahead and resign.
The uncertainty will haunt the European Central Bank as it holds a policy meeting where it is likely to kick off a tightening cycle with a rise of 25 basis points. read more
Markets are also hanging on details of an anti-fragmentation tool intended to ease pressure on borrowing costs for the Union's most indebted members.
Investors found some relief in Friday's rally on Wall Street and MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7%, having shed 3.5% last week.
Japan's Nikkei was closed for a holiday, but futures traded at 27,040 compared to a cash close of 26,788, while South Korea gained 1.4%.
Chinese blue chips added 0.4%, though Shanghai announced more districtwide coronavirus testing.
S&P 500 futures edged up 0.2%, while Nasdaq futures firmed 0.4%. EUROSTOXX 50 futures rose 0.1% and FTSE futures were flat.
A who's who of corporates report earnings will be on show this week including Goldman Sachs Group Inc, Bank of America Corp, International Business Corp, Netflix Inc, Tesla Inc and Twitter Inc
Of the 35 companies in the S&P 500 having reported, 80% have beaten Street expectations, according to Refinitiv. Analysts now expect aggregate year-on-year second-quarter profit growth of 5.6%, down from 6.8% at the beginning of the quarter.
Investors have also been encouraged that the Federal Reserve is likely to hike by "only" 75 basis points next week, in part thanks to an easing in consumer fears of inflation.
FTSE 100 live outlook prediction analysis for 18th July 2022
It looks like we will be on for a dip and rise today for a decent Bull Monday performance, and we have decent support down at the 7140 level (and a back test of the resistance there we saw on Friday).
Initial resistance is at the 7220 level as we have R1 here, then the daily level at 7233 above that. As such we could see the initial drop off from this area to start with.
Above the 7233 level then the bulls will be looking to target the 7305 level as we have a cluster of daily resistance here - the 10d Raff, daily coral and the 200ema on the daily as well. With a round number thrown in for good measure.
Above that then 7358 is R3 - seems a bit of a big ask but with oil staying below $100 we could well have a drop off in the next inflation figures. That may be transitory though!!! Once the Northern Hemisphere winter arrives......
Back to the bears and if the 7140 level breaks then a drop down to S1 and the key fib at the 7078 level would probably happen, though that does feel a bit too bearish based on the current sentiment.
Earnings so far have been positive and that will be helping the bulls for the moment too. 2h charts for all three markets remain bullish for the moment.
S&P500
Initial resistance is at the 3893 to 3900 area as we have R1 here and the round number. A kick up to here to start with before a drop down to the 3845 level would all fit pretty well, and again as with the FTSE100 chart, the short term bias is long. Again it looks like a dip and rise will play out, and then ultimately a rise towards the 3923 level where we have R2 and the top of the 10d Raff channel. Below the 3844 level then the 3820 area is the next key level as we have the 30m 200ema here, tand 3805 for S1.
So, watch for a dip and rise today, safe trading and good luck!
Recommended Broker

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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

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

The FTSE 100 ended the week lower on worries about aggressive interest rate hikes and a sharp slowdown in the global economy, even as energy and defensive stocks propped up the index earlier today The benchmark added 1.7pc, supported by energy giant Shell, AstraZeneca and British American Tobacco . The FTSE 250 gained 1.9pc.

Stocks and US equity futures rose Monday amid scaled back bets on how aggressively the Federal Reserve will hike interest rates and as investors assessed Chinese pledges to shore up economic growth.

A gauge of Asian shares added more than 1%, boosted by a jump in Chinese technology firms. S&P 500, Nasdaq 100 and European contracts pushed higher following a Wall Street rally Friday. Japan is shut for a holiday.

Asian shares inched higher on Monday following a much-needed bounce on Wall Street, but nerves are stretched ahead of a near-certain interest rate hike in Europe and another round of corporate earnings reports.

It is shaping up to be a fraught week for Europe as it waits anxiously to see if Russia resumes the flow of gas through the Nord Stream 1 pipeline on July 21, while Italy teeters on the brink of political turmoil should Prime Minister Mario Draghi go ahead and resign.

The uncertainty will haunt the European Central Bank as it holds a policy meeting where it is likely to kick off a tightening cycle with a rise of 25 basis points. read more
Markets are also hanging on details of an anti-fragmentation tool intended to ease pressure on borrowing costs for the Union's most indebted members.

Investors found some relief in Friday's rally on Wall Street and MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7%, having shed 3.5% last week.

Japan's Nikkei was closed for a holiday, but futures traded at 27,040 compared to a cash close of 26,788, while South Korea gained 1.4%.
Chinese blue chips added 0.4%, though Shanghai announced more districtwide coronavirus testing.

S&P 500 futures edged up 0.2%, while Nasdaq futures firmed 0.4%. EUROSTOXX 50 futures rose 0.1% and FTSE futures were flat.

A who's who of corporates report earnings will be on show this week including Goldman Sachs Group Inc, Bank of America Corp, International Business Corp, Netflix Inc, Tesla Inc and Twitter Inc

Of the 35 companies in the S&P 500 having reported, 80% have beaten Street expectations, according to Refinitiv. Analysts now expect aggregate year-on-year second-quarter profit growth of 5.6%, down from 6.8% at the beginning of the quarter.

Investors have also been encouraged that the Federal Reserve is likely to hike by "only" 75 basis points next week, in part thanks to an easing in consumer fears of inflation.

FTSE 100 live outlook prediction analysis for 18th July 2022

It looks like we will be on for a dip and rise today for a decent Bull Monday performance, and we have decent support down at the 7140 level (and a back test of the resistance there we saw on Friday).

Initial resistance is at the 7220 level as we have R1 here, then the daily level at 7233 above that. As such we could see the initial drop off from this area to start with.

Above the 7233 level then the bulls will be looking to target the 7305 level as we have a cluster of daily resistance here - the 10d Raff, daily coral and the 200ema on the daily as well. With a round number thrown in for good measure.

Above that then 7358 is R3 - seems a bit of a big ask but with oil staying below $100 we could well have a drop off in the next inflation figures. That may be transitory though!!! Once the Northern Hemisphere winter arrives......

Back to the bears and if the 7140 level breaks then a drop down to S1 and the key fib at the 7078 level would probably happen, though that does feel a bit too bearish based on the current sentiment.

Earnings so far have been positive and that will be helping the bulls for the moment too. 2h charts for all three markets remain bullish for the moment.

S&P500
Initial resistance is at the 3893 to 3900 area as we have R1 here and the round number. A kick up to here to start with before a drop down to the 3845 level would all fit pretty well, and again as with the FTSE100 chart, the short term bias is long. Again it looks like a dip and rise will play out, and then ultimately a rise towards the 3923 level where we have R2 and the top of the 10d Raff channel. Below the 3844 level then the 3820 area is the next key level as we have the 30m 200ema here, tand 3805 for S1.

So, watch for a dip and rise today, safe trading and good luck!

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