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Bulls get and hold above 7100 | 7100 7037 7000 support | 7146 7211 resistance

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

The FTSE 100 pushed higher to record its best day in two months yesterday, extending gains to break through the key 7,000 points mark. The blue-chip index rose 1.5pc, with banks leading gains as default fears around property giant Evergrande eased.

Entain jumped 5.1pc to an all-time high after the gambling firm revealed a £16.5bn takeover proposal from Boston-based DraftKings, which was nearly double a bid it rejected from MGM this year. Miners Antofagasta, Glencore and Anglo American also jumped thanks to higher commodity prices.

Two more energy suppliers have collapsed as the UK's power crisis shows no signs of abating. Avro Energy and Green Supplier have both ceased trading after surging wholesale gas prices pushed the cost of energy above the price cap

Avro supplies gas and electricity to around 580,000 customers, while Green serves roughly 255,000 customers in the UK and some customers abroad. Together the suppliers represent a share of 2.9pc of the domestic market.

Federal Reserve Chair Jerome Powell said the U.S. central bank could begin scaling back asset purchases in November and complete the process by mid-2022, after officials revealed a growing inclination to raise interest rates next year. Powell, explaining the central bank’s first steps toward withdrawing emergency pandemic support for the economy, said tapering “could come as soon as the next meeting.” That refers to the policy gathering at the beginning of November, although he left the door open to waiting longer if needed. Powell also said there is little direct U.S. exposure to debt of the crisis-hit Chinese company Evergrande but said the giant’s problems could impact global financial conditions

FTSE 100 live outlook prediction analysis for 23rd September 2021

The bulls have fought back well and we seem to be holding above the 7100 ok overnight. That said we have the BoE today with their rate decision which could reverse this bounce off 6840. The S&P has also got back above 4400 and looks to be on for a test of the R1 level at 4433 today. We could see a stutter here, and that may coincide with the FTSE hitting the top of the Raff channels around the 7150 area. If the bears appear here on both of these then we may well see a slide from here.

Initially it looks like the bulls will push us up first thing and the 7146 R1 level look like a good initial target. Above that 7146-7160 area where we have a cluster of resistance levels the bulls may manage to get this up as far as the 7200 level and knock on the door of R2 at 7211 for today. I think the short term low may well be in at the 6840 level though but still stay prepared for another leg down just in case. The 2h chart is firmly bullish now with support at 6990 from the Hull moving average and the coral has now gone green (uptrend) with support at 6957 and rising. As such any dip down to these areas is likely to hold.

For the bears they will be looking to get the price back below 7100 in short order, as they can then target the pivot at 7038 and the 200ema on the 30m at 7020. Below that 6995 is the key fib and then S1 for today at 6973. To be honest though I would be surprised if we dip too much today and any dip down to 7040 is likely to be defended.

The S&P daily chart also has the 25ema resistance at 4447 - not sure it will get this high today as we may well stutter just below this at the 4435 level - but if it did then also look for a reaction here. We have not had a sell signal lock in yet on the S&P but this area could see it. That would end this bounce and then set up another leg down before the rally kicks in next month for the next leg up, maybe as low as 4250.

So, still a case of buy the dips for the moment, but watching for a test and reaction at the top of the Raffs around the R1 level initially - 7140 to 7160.

Good luck today.

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