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Bulls need to break 7130 with 7160 7200 resistance above | 7096 7090 7071 support

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

FTSE 100 live outlook prediction analysis for 5th August 2021

The FTSE 100 rose 0.3pc as results boost optimism yesterday and crucially for the bulls held above 7100. Likewise the S&P500 defended the 4400 level though hasn't really pulled away yet.

With the recent bullishness the FTSE100 daily chart has gone bullish with a positive moving average cross over and support now showing at 7060. If we were to get that low then a bounce here could well play out. The bulls defended the 7100 level yesterday and any dip below may well see the same today. We also have S1 at 7096 and the 200ema at 7089 to give initial support this morning. We may not dip as low at 7060.

The bulls will need to break above the 7120 30m red coral line and we also have the 2h resistance level here from the Hull MA at 7126.

If the bulls push past the 7130 level then we have the key fib and R2 area at 7160 as the next likely resistance zone and then finally a possible rise towards the 7193 daily resisatnce level. The top of the 10 day Raff channel has moved up a bit now too at 7215 but I am not expecting that level today. Though never say never!

The trend remains bullish really for the moment and buying the dips remains the play for the time being. A lot will depend on the S&P500 being able to pull up towards the 4450 area really. That would then help pull up the FTSE100 towards the 7200 area.

The ASX200 put in a decent bullish day and we may well see the same if the bulls can defend the support levels today. I am watching 7090 and 7060 as the main support levels, and 7125 and 7160 as the main resistance levels today.

Good luck today.

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Asian Session

Asian stocks were mixed Thursday as investors assessed mixed U.S. economic data and comments from a Federal Reserve official that the central bank is on course to taper stimulus support.

Equities edged up in Japan and fluctuated elsewhere including Hong Kong and China, where Beijing’s regulatory curbs continue to dominate the agenda. The S&P 500 fell from a record overnight, led lower by energy shares, while the technology sector proved more resilient. U.S. contracts climbed in Asian trading.

Vice Chairman Richard Clarida said the Fed is on track for a liftoff in interest rates in 2023 and an announcement later this year on paring bond purchases. Clarida’s comments helped to cement money-market bets for an initial rate hike in early 2023. Treasury yields advanced and the dollar held a climb.

Oil steadied below $70 a barrel after a three-day slump exacerbated by the coronavirus resurgence.

Clarida painted an upbeat picture of the outlook while acknowledging that the rapid spread of the delta virus strain poses a downside risk. Global stocks remain close to all-time highs as investors assess the Fed outlook, robust earnings and the challenges to economic reopening from Covid-19. China’s regulatory crackdown on private industries also remains in focus.

The latest economic data showed a much softer-than-expected ADP employment report but a record expansion for U.S. service industries. U.S. jobs numbers are due Friday. [Bloomberg]

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