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Bulls just about defend 7000 and now need to break 7045 | 7080 7115 resistance | 6990 6950 support

#1 · 26th May 2021, 9:43 am

Quote from Nick on 26th May 2021, 9:43 am
FTSE 100 live outlook prediction analysis for 26th May 2021
London’s markets drifted into the red as poor showings by miners and commodity firms offset optimism about the easing of UK restrictions. The FTSE 100 ended down 21.8 points at 7,029.79, while the FTSE 250 lost 44.83 points to 22,438.90.
Mining stocks continued to tumble and amid pressure from China about rising commodity prices with Anglo American, Glencore, Antofagasta and BHP all in the top 10 losers on the benchmark.
Staying Cautious
Asian stocks look set for a weaker open Wednesday after softer economic data weighed on U.S. equities. Treasuries rallied and the dollar dipped as Federal Reserve officials again predicted transitory price pressures. Futures were in the red in Japan and Australia, but little changed in Hong Kong. The S&P 500 slipped and the Nasdaq 100 posted a modest gain after reports showed U.S. new home sales slid and that consumer confidence retreated slightly amid concerns about inflation and job prospects. U.S. equity contracts were steady. Treasury yields declined as more Fed officials joined a chorus downplaying signs of inflationary pressures.
— Sales of U.S. homes in April came in lower than expected after soaring lumber costs pushed prices much higher. There's concern now that the cost of new homes is reaching a point where it simply starts to squeeze many people out of the market.
— Inflation expectations in the U.S. ticked up to 6.5%, according to the Conference Board data released yesterday, basically a decade high if you strip out a pandemic-related spike from last year. Bloomberg Intelligence Economist Yelena Shulyatyeva suggests that inflation expectations are now at the point where they're starting to hit consumer confidence and future buying plans.
— The South China Morning Post reported that a surge in the cost of raw materials is "sweeping through a number of factories in China's southern manufacturing hub," threatening their bottom lines.[Bloomberg]
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FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Dipped a bit below the main support yesterday but the bulls defended the 7000 level yesterday evening, along with the 4186 2h support on the S&P. That said, the later has only climbed to 4200 and we have new 2h resistance in play now at 4204. With the red 30min coral here we could well see a dip off that initially. The bulls will be keen to push through the resistance levels though as that will open up the possibility of a test of the R2 level at 4232. Can it go higher though towards the top of the Raff channels at 4280?
For the FTSE, initial support is on a weak looking 30m chart at 7030, but again, we have 2 hour resistance close by at 7045. As such, this is the level that the bulls will need to break, and then we should be on track for another test of the 7079 level which was yesterdays high. I am still expecting a test of the 7130 area though sometime soon. Above the 7080 level we have R1 at 7115, then R3 at 7149, so that daily level splits those 2. I rise to 7125ish would play out well though.
We have moved back above the 200ema on the 30m chart overnight, so again, initial support on that at the 7027 level. It would be god to see this hold initially fir a push higher this morning.
Below 7027, we have 7000 as mentioned, then 6984 for the key fib level, and then the possibility of the daily support level at 6950. That is also linking up with the S2 level for today at 6957, so should we slide that low then the bulls will definably be trying hard to defend that area. A break of that and it looks a lot weaker, with a drop down to the bottom of the Raff channels at 6875 and 6850 potentially playing out.
So, few levels to watch, expecting a bit of a rise to retest that 7080 area and possibly higher. 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.
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FTSE 100 live outlook prediction analysis for 26th May 2021

London’s markets drifted into the red as poor showings by miners and commodity firms offset optimism about the easing of UK restrictions. The FTSE 100 ended down 21.8 points at 7,029.79, while the FTSE 250 lost 44.83 points to 22,438.90.

Mining stocks continued to tumble and amid pressure from China about rising commodity prices with Anglo American, Glencore, Antofagasta and BHP all in the top 10 losers on the benchmark.

Staying Cautious

Asian stocks look set for a weaker open Wednesday after softer economic data weighed on U.S. equities. Treasuries rallied and the dollar dipped as Federal Reserve officials again predicted transitory price pressures. Futures were in the red in Japan and Australia, but little changed in Hong Kong. The S&P 500 slipped and the Nasdaq 100 posted a modest gain after reports showed U.S. new home sales slid and that consumer confidence retreated slightly amid concerns about inflation and job prospects. U.S. equity contracts were steady. Treasury yields declined as more Fed officials joined a chorus downplaying signs of inflationary pressures.

— Sales of U.S. homes in April came in lower than expected after soaring lumber costs pushed prices much higher. There's concern now that the cost of new homes is reaching a point where it simply starts to squeeze many people out of the market.
— Inflation expectations in the U.S. ticked up to 6.5%, according to the Conference Board data released yesterday, basically a decade high if you strip out a pandemic-related spike from last year. Bloomberg Intelligence Economist Yelena Shulyatyeva suggests that inflation expectations are now at the point where they're starting to hit consumer confidence and future buying plans.
— The South China Morning Post reported that a surge in the cost of raw materials is "sweeping through a number of factories in China's southern manufacturing hub," threatening their bottom lines.[Bloomberg]

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

Dipped a bit below the main support yesterday but the bulls defended the 7000 level yesterday evening, along with the 4186 2h support on the S&P. That said, the later has only climbed to 4200 and we have new 2h resistance in play now at 4204. With the red 30min coral here we could well see a dip off that initially. The bulls will be keen to push through the resistance levels though as that will open up the possibility of a test of the R2 level at 4232. Can it go higher though towards the top of the Raff channels at 4280?

For the FTSE, initial support is on a weak looking 30m chart at 7030, but again, we have 2 hour resistance close by at 7045. As such, this is the level that the bulls will need to break, and then we should be on track for another test of the 7079 level which was yesterdays high. I am still expecting a test of the 7130 area though sometime soon. Above the 7080 level we have R1 at 7115, then R3 at 7149, so that daily level splits those 2. I rise to 7125ish would play out well though.

We have moved back above the 200ema on the 30m chart overnight, so again, initial support on that at the 7027 level. It would be god to see this hold initially fir a push higher this morning.

Below 7027, we have 7000 as mentioned, then 6984 for the key fib level, and then the possibility of the daily support level at 6950. That is also linking up with the S2 level for today at 6957, so should we slide that low then the bulls will definably be trying hard to defend that area. A break of that and it looks a lot weaker, with a drop down to the bottom of the Raff channels at 6875 and 6850 potentially playing out.

So, few levels to watch, expecting a bit of a rise to retest that 7080 area and possibly higher. 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

Keep up to date with new content, free sign up below

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