Quote from Nick on 29th October 2021, 9:31 am

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

The FTSE 100 fell Thursday, led by oil major Royal Dutch Shell after it missed quarterly profit estimates, although forecast-beating earnings from Lloyds Banking Group and ad firm WPP checked overall declines. Overall the FTSE 100 fell 0.2pc after the Budget spending spree.

German inflation has soared to its highest level in more than two decades, raising the prospect of higher costs for everything from beer to cars. Consumer price inflation accelerated at an unprecedented pace of 4.6pc in October, up from 4.1pc in the previous month, according to official data released on Thursday. This was the highest level recorded since inflation was first recorded across the eurozone in January 1997.

U.S. futures fell Friday and Asian stocks were mixed after disappointing Amazon.com Inc. and Apple Inc. earnings and as traders weighed bond-market gyrations amid concerns over inflation and monetary tightening.

Chinese shares were modestly higher, while Japan fluctuated. Nasdaq 100 contracts underperformed S&P 500 futures. Apple and Amazon fell in extended trading, signaling a more than $200 billion drop in combined market value when the U.S. reopens. That dented upbeat views on company performance that earlier took Wall Street to a record close.

Weapons in Place
India has deployed recently acquired U.S.-made weaponry along its border with China, part of a new offensive force to bolster its capabilities. The buildup in India’s northeast is centered on the Tawang Plateau adjoining Bhutan and Tibet, a piece of land claimed by China but controlled by India. The news came as India test-fired a nuclear-capable intercontinental ballistic missile with a range of 5,000 kilometers. Meanwhile, while recent headlines make it seem as though the U.S. and China are hurtling toward conflict over Taiwan, signs are increasing that they are starting to climb out of the diplomatic spiral that began with former President Donald Trump’s steel tariffs in March 2018.

FTSE 100 live outlook prediction analysis for 29th October 2021

Despite holding above the 7200 level the bulls performance hasn't been that stellar as the consolidation phase has played out for most of this week. We are nearly at the bottom of the 10 day Raff channel as I write this at 7208, and as such it would be good for the bulls to hold this level. If they manage to do so then we may well see an initial rise towards the 7245 resistance area, with the daily pivot and 200ema here.

The 200ema (30m) has acted well as support this week but overnight we have slipped below it, and as such that could well become initial resistance. The 2h chart is also bearish for the moment with the coral going red and resistance from that at 7260. Should we see that level today then we may well see the bears have a crack here.

The S&P is looking a bit more positive though and the bulls will be keen to defend the 4565 level where we have the 200ema on that. The 2h chart is bullish though we are below the supports so not the cleanest of set ups. The key will be for the bulls to defend (once again!) for a push back towards the 4600 level. We have R1 at 4602 so a break of this will be significant and likely see the key fib at 4611. The bottom of the 10 day Raff channel for the S&P500 is at 4550, which has acted well as support and could do so again on any weakness today.

The ASX200 had a bearish trending day today, as month end and a Friday, and poor Apple and Amazon results yesterday upset the apple cart. We could see similar today on the European and US markets if the bulls cant defend first thing this morning. 7210 FTSE looks a key area to start with!

If the bears break the 7208 level then 7193 is S2 and the key fib, with 7151 below that with the bottom of the 20d channels here. A break of that therefore is pretty negative. We may get that low today if we follow the Australian pattern and trend down all day.

On the other hadn't, if the bulls were to break above the 7245 level then 7290 is the next main area of resistance with the key fib and the R2 level here, assuming they can break the 2h resistance at 7260 where we have the red coral and Hull moving average.

So, could be an interesting one today and as its Friday and month end it could pay to be a bit more cautious (lower stakes etc). Those holding shorts from lower down may get their escape route today though!

Have a good weekend and good luck today.

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