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Can the bulls break and hold 7600 | 7606 7635 7670 resistance | 7551 7533 support

#1 · 5th January 2023, 9:57 am

Quote from Nick on 5th January 2023, 9:57 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 5th January 2023
Asian shares rose on Thursday on hopes for China's emergence from the pandemic, while the dollar found support after analysts spotted a warning against betting too heavily on rate cuts this year in minutes from the last Federal Reserve policy meeting.
Fed funds futures pricing shows traders think the benchmark U.S. interest rate will peak just below 5% in May or June, before being cut back a little bit in the second half of 2023.
Once again the bulls tried and failed to break above the 7600 level and hold it there, and we have resistance at 7606 for R1 today as well. This week we have had a succession of lower highs, so we could see another stall here if we manage to push up to that level initially.
The 30m coral is now red though and showing a downtrend with resistance also at the 7585 level to start with, so its possible that we get a dip and rise day play out today, as the bears take it down to the first support level at the 7535 area. We have a cluster of supports here - 200ema 30m, key fib and the 2h coral (also green though not the first test) so it would be good to see this hold for a bounce back up.
The ASX200 put in a similar pattern today and we may well do the same. The year has started fairly positively for the FTSE100 and we may well see that continue for the moment. The bulls will certainly be keen to try and get a move to stick above the 7600 level.
The S&P500 2h chart remains bullish too but the key will be a push past the 3876 level as we have a cluster of resistance levels here - R1, key fib and the 25ema on the daily (though not the first test of this resistance level - that was 3880 on Tuesday). A break above this therefore should help to pull the FTSE100 up with it.
Above the 7606 resistance level then the next major test will be 7635 and with the key fib and R2 here we may well see a stutter here. As such, a short here looks to be worth taking, for a back test of the 7600 level which may well turn into support. Above that then R3 is 7662 though I am not convinced that we will push that high today.
Support wise, below the 7537 level then 7494 is S3 and would probably get tested if they break it, especially if the Dax and S&P500 start to slide as well.
Interestingly on the Dax40 though, the daily chart has now gone bullish again and the EMA support at the 14125 level should act as decent support. If we see a test of this EMA line soon then a swing long here will be worth taking. I will alert in the trading room as per usual.
Good luck today.
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Daily Analysis pre market open (sent around 7am each day) for FTSE100, DAX40, Gold and S&P500.
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FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 5th January 2023

Asian shares rose on Thursday on hopes for China's emergence from the pandemic, while the dollar found support after analysts spotted a warning against betting too heavily on rate cuts this year in minutes from the last Federal Reserve policy meeting.

Fed funds futures pricing shows traders think the benchmark U.S. interest rate will peak just below 5% in May or June, before being cut back a little bit in the second half of 2023.

Once again the bulls tried and failed to break above the 7600 level and hold it there, and we have resistance at 7606 for R1 today as well. This week we have had a succession of lower highs, so we could see another stall here if we manage to push up to that level initially.

The 30m coral is now red though and showing a downtrend with resistance also at the 7585 level to start with, so its possible that we get a dip and rise day play out today, as the bears take it down to the first support level at the 7535 area. We have a cluster of supports here - 200ema 30m, key fib and the 2h coral (also green though not the first test) so it would be good to see this hold for a bounce back up.

The ASX200 put in a similar pattern today and we may well do the same. The year has started fairly positively for the FTSE100 and we may well see that continue for the moment. The bulls will certainly be keen to try and get a move to stick above the 7600 level.

The S&P500 2h chart remains bullish too but the key will be a push past the 3876 level as we have a cluster of resistance levels here - R1, key fib and the 25ema on the daily (though not the first test of this resistance level - that was 3880 on Tuesday). A break above this therefore should help to pull the FTSE100 up with it.

Above the 7606 resistance level then the next major test will be 7635 and with the key fib and R2 here we may well see a stutter here. As such, a short here looks to be worth taking, for a back test of the 7600 level which may well turn into support. Above that then R3 is 7662 though I am not convinced that we will push that high today.

Support wise, below the 7537 level then 7494 is S3 and would probably get tested if they break it, especially if the Dax and S&P500 start to slide as well.

Interestingly on the Dax40 though, the daily chart has now gone bullish again and the EMA support at the 14125 level should act as decent support. If we see a test of this EMA line soon then a swing long here will be worth taking. I will alert in the trading room as per usual.

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 FTSE100, 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 FTSE100, DAX40, Gold and S&P500.
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