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Bulls need to defend | Fed interest rate decision 0.25% | 6662 6690 resistance | 6620 6580 6565 support

#1 · 27th January 2021, 10:50 am

Quote from Nick on 27th January 2021, 10:50 am
FTSE 100 live outlook prediction analysis for 27th January 2021
Bullish sentiment took hold of markets on Tuesday, boosted by the International Monetary Fund lifting its expectations for 2021 world growth to 5.5pc, up from 5.2pc in October. It did, however, caution that new variants of the virus are a concern for its outlook.

The blue-chip FTSE 100 index gained a slight 15.16 points to 6,654.01, while the FTSE 250 rose 97.95 points to 20,448.36. The mood was dampened, however, by a jump in Britain’s unemployment rate to 5pc in the three months to November, its highest in nearly five years.
Larger market gains were also offset by a rallying pound, which climbed despite the fresh ONS statistics. It rallied 0.5pc against the US dollar to touch $1.3740 on the back of recovery hopes from the IMF’s predictions.
100 Million
Global coronavirus cases surpassed 100 million, according to datacompiled by Johns Hopkins University, marking another grim milestone in the pandemic. Meanwhile the U.K. became the first nation in Europe with 100,000 deaths, while New Zealand said it would likely keep its borders closed to the world through most of 2021. In the U.S. the Biden administration is reviewing whether more nations need to be added to a list of countries facing travel restrictions, while European Union governments plan to remove Japan from their list of countries whose residents should be allowed to visit the bloc. Hong Kong implemented a second sudden neighborhood lockdown in part of the densely-populated Kowloon area, as the city deploys targeted mandatory testing to try and end a persistent fourth surge of coronavirus cases.
Market Open
Asian stocks looked set to recover from their biggest slide in two months as investors mulled a slew of earnings reports amid worries over virus variants and hurdles to stimulus. A gauge of U.S. tech stocks rose after the market closed. Futures pointed higher in Japan and Hong Kong, while they slipped in Australia which reopens after a holiday. Nasdaq 100 contracts jumped after hours following a strong earnings report from Microsoft. U.S. stocks ended an up-and-down session slightly lower. Small-caps were among the worst performers as traders turned away from bets on an end to Covid lockdowns. Treasury yields were little changed. The dollar weakened. Oil edged lower and gold retreated.[Bloomberg]
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US & Asia Overnight from Bloomberg
Asian stocks fluctuated Wednesday after their biggest slide in two months as investors mulled a slew of earnings reports and awaited the conclusion of the Federal Reserve’s first policy meeting of the year. Nasdaq futures climbed.
Stocks pared earlier gains across much of the region, edging higher in Japan and Hong Kong and falling back in South Korea. Australian shares underperformed as they reopened after a holiday. Nasdaq 100 contracts jumped following a strong earnings report from Microsoft Corp. S&P 500 futures were little changed after the benchmark ended an up-and-down session slightly lower.
Elsewhere, Treasury yields were steady and the dollar edged up. Oil advanced higher and gold slipped. Bitcoin dipped below the $32,000 level.
Global stocks are mostly treading water near record highs as U.S. corporate earnings season gears up this week. New coronavirus variants that sparked fresh lockdowns and other restrictions are weighing on the so-called reflation trade that bets on an end to curbs.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Quite a battle going on between bulls and bears at the moment, as the S&P defends for a push back up towards the 3865 level, while the FTSE is defending the 6620 level. To start with today the 30 minute chart has gone bearish with resistance at the the daily pivot and coral line at 6660 so if we get an initial move up to here we may well see the bears try again. We are of course heading into reporting season for the tech companies, which may well give the US markets that final push up.
Today we also have the Fed's policy decision later today, with interest rate at 0.25% expected to remain.
If the bulls can break above the 6666 level then 6682 is the 200ema on the 30m chart, and the next area of note. We also have the 2h coral at 6675 for today, and it was the first test of this at 6700 that we dropped off yesterday since it changed to red. The second test isn't usually quite as good but keep an eye on it. Above that then R1 level of 6700 tallies with yesterdays high, and we also have the key fib here for today. The bulls might have a job trying to push past this but keep an eye on the S&P and see if that helps the bears case. Cable is also pushing on still, nearing the 138 level which is keeping a lid on the FTSE for the moment.
For the bears, they will be looking to break the 6620 area that has held as support so far. We also have S1 and the key fib here so should likely see it hold, at least initially. If they do break below that then the next support is 6582 for S2 and the bottom of the 10 day Raff channel, with the daily support at 6565 below that. Both of these 2 levels should see a reaction if tested.
So interesting times, we have the "people" fighting back against a couple of hedge funds via Gamestop (check this out if you haven't read about it), rioting by the mild mannered Dutch, China flexing their muscles against Taiwan and India and the markets still running hot. Dip coming?
Watch 6620, 6580 and 6565 for support. 6660 and 6700 for resistance. 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 27th January 2021

Bullish sentiment took hold of markets on Tuesday, boosted by the International Monetary Fund lifting its expectations for 2021 world growth to 5.5pc, up from 5.2pc in October. It did, however, caution that new variants of the virus are a concern for its outlook.

The blue-chip FTSE 100 index gained a slight 15.16 points to 6,654.01, while the FTSE 250 rose 97.95 points to 20,448.36. The mood was dampened, however, by a jump in Britain’s unemployment rate to 5pc in the three months to November, its highest in nearly five years.

Larger market gains were also offset by a rallying pound, which climbed despite the fresh ONS statistics. It rallied 0.5pc against the US dollar to touch $1.3740 on the back of recovery hopes from the IMF’s predictions.

100 Million

Global coronavirus cases surpassed 100 million, according to datacompiled by Johns Hopkins University, marking another grim milestone in the pandemic. Meanwhile the U.K. became the first nation in Europe with 100,000 deaths, while New Zealand said it would likely keep its borders closed to the world through most of 2021. In the U.S. the Biden administration is reviewing whether more nations need to be added to a list of countries facing travel restrictions, while European Union governments plan to remove Japan from their list of countries whose residents should be allowed to visit the bloc. Hong Kong implemented a second sudden neighborhood lockdown in part of the densely-populated Kowloon area, as the city deploys targeted mandatory testing to try and end a persistent fourth surge of coronavirus cases.

Market Open

Asian stocks looked set to recover from their biggest slide in two months as investors mulled a slew of earnings reports amid worries over virus variants and hurdles to stimulus. A gauge of U.S. tech stocks rose after the market closed. Futures pointed higher in Japan and Hong Kong, while they slipped in Australia which reopens after a holiday. Nasdaq 100 contracts jumped after hours following a strong earnings report from Microsoft. U.S. stocks ended an up-and-down session slightly lower. Small-caps were among the worst performers as traders turned away from bets on an end to Covid lockdowns. Treasury yields were little changed. The dollar weakened. Oil edged lower and gold retreated.[Bloomberg]

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US & Asia Overnight from Bloomberg

Asian stocks fluctuated Wednesday after their biggest slide in two months as investors mulled a slew of earnings reports and awaited the conclusion of the Federal Reserve’s first policy meeting of the year. Nasdaq futures climbed.

Stocks pared earlier gains across much of the region, edging higher in Japan and Hong Kong and falling back in South Korea. Australian shares underperformed as they reopened after a holiday. Nasdaq 100 contracts jumped following a strong earnings report from Microsoft Corp. S&P 500 futures were little changed after the benchmark ended an up-and-down session slightly lower.

Elsewhere, Treasury yields were steady and the dollar edged up. Oil advanced higher and gold slipped. Bitcoin dipped below the $32,000 level.

Global stocks are mostly treading water near record highs as U.S. corporate earnings season gears up this week. New coronavirus variants that sparked fresh lockdowns and other restrictions are weighing on the so-called reflation trade that bets on an end to curbs.

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

Quite a battle going on between bulls and bears at the moment, as the S&P defends for a push back up towards the 3865 level, while the FTSE is defending the 6620 level. To start with today the 30 minute chart has gone bearish with resistance at the the daily pivot and coral line at 6660 so if we get an initial move up to here we may well see the bears try again. We are of course heading into reporting season for the tech companies, which may well give the US markets that final push up.

Today we also have the Fed's policy decision later today, with interest rate at 0.25% expected to remain.

If the bulls can break above the 6666 level then 6682 is the 200ema on the 30m chart, and the next area of note. We also have the 2h coral at 6675 for today, and it was the first test of this at 6700 that we dropped off yesterday since it changed to red. The second test isn't usually quite as good but keep an eye on it. Above that then R1 level of 6700 tallies with yesterdays high, and we also have the key fib here for today. The bulls might have a job trying to push past this but keep an eye on the S&P and see if that helps the bears case. Cable is also pushing on still, nearing the 138 level which is keeping a lid on the FTSE for the moment.

For the bears, they will be looking to break the 6620 area that has held as support so far. We also have S1 and the key fib here so should likely see it hold, at least initially. If they do break below that then the next support is 6582 for S2 and the bottom of the 10 day Raff channel, with the daily support at 6565 below that. Both of these 2 levels should see a reaction if tested.

So interesting times, we have the "people" fighting back against a couple of hedge funds via Gamestop (check this out if you haven't read about it), rioting by the mild mannered Dutch, China flexing their muscles against Taiwan and India and the markets still running hot. Dip coming?

Watch 6620, 6580 and 6565 for support. 6660 and 6700 for resistance. 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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