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Bulls holding up well with 7180 7250 next key levels | 4414 SPX resistance | 7100 7073 support

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

The FTSE 100 closed up 1.1pc or 80 points at 7108.16 yesterday.  The index was boosted by Astra Zeneca, which rose up 4.2pc after the pharmaceutical company said it would take full control of rare disease specialist Caelum in a deal worth up to $500m.

Next also rose 3.9pc and British Airways owner IAG was up 2.6pc.

Royal Mail trailed the index, falling 8.8pc after a broker downgrade.

The FTSE 250 ended the day flat at 23,150 points, with gains by Trustpilot (up 4.1pc) and Playtech (up 3.5pc) balanced out by the losses of Upper Crust owner SSP (down 5.4pc) and Baltic Classifieds Group (down 5.7pc).

Every energy supplier has been told to provide detailed information on its finances to the industry watchdog amid fears of a wave of winter bankruptcies as another three companies went bust in the face of surging power prices.

China is considering raising power prices for industrial consumers to help ease the growing supply crunch. The rate hikes for factories could come in the form of higher flat fees or be linked to the price of coal. The energy shortage in China has unleashed turmoil in commodities markets, forcing silicon makers in the world’s top producer to dramatically slash output, a signal that the price of solar panels is about to rise.

Cautious Optimism
Federal Reserve Chair Jerome Powell and his counterparts at the European Central Bank, Bank of Japan and Bank of England voiced cautious optimism Wednesday that supply-chain disruptions lifting inflation rates around the world would ultimately prove temporary. Meanwhile, President Joe Biden and his aides scrambled to break a deadlock among Democrats that has stalled progress on his economic plans as the White House and Congress stare down deadlines to keep the government running and avoid a default.

FTSE 100 live outlook prediction analysis for 30th September 2021

The 7011 continued to hold and today we may well see a dip and rise play out across the board. Gold dropped off yesterday as money flowed out of the safe haven, and the S&P500 still has a bit more upside potential to reach its 2hr resistance level at 4414. That may well coincide with the FTSE100 putting in a rise towards the 7180 resistance area. We also have R2 there for today so we should see a reaction at this level.

The bulls have managed to push past the 7130 resistance level overnight, as the Asian markets have risen, and also helped by the pound dropping yesterday - making UK stocks look cheaper on the global stage. Above 7180 then we would be looking at a test of the 7200 level again, and 7250 is R3 though I am not thinking that we will get that high today. Mind you, you never know!

For the bears, they will be looking to break 7130 initially (previous resistance becoming support) and a drop down to the 30m coral line at 7099. Below that then there is really good looking support at the 7075 level with a cluster of supports here, namely, the daily pivot, 200ema 30m, 2 coral and Hull MA on the 2hr also.

If the bears manage to get it down to 7075 then we may well see the bulls reappear here to build on yesterdays rise. They aren't going to give up too easily.

That said, the 4414 and 7180 levels look key and whilst 6830 is looking like the low for the moment, we could well get one more leg down before the year end push starts. The "US running out of money" issue has raised its head again as the debt ceiling approaches. Some things get tedious!

A dip down to the daily pivot levels on the FTSE100, Dax40 and S&P500 before a bounce today would fit quite well. 7075, 15344 and 4370 respectively for that. Keep an eye on these levels.

So, generally it looks more optimistic for the short term but we are coming into some key resistance levels again, 4414 and 7180 so remain cautious with the longs. Good luck today.

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