Quote from Nick on 19th October 2021, 10:27 am

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

The 7185 support level held yesterday for a bit of a dip and rise to play out and overnight the FTSE100 futures have remained above the 7200 level. Overall the FTSE100 closed down 0.5%. The dip and rise was more pronounced on the S&P500 which dropped to 4444 and then added 50. As a result of the slide yesterday not he FTSE the 2h chart has gone bearish with 7245 resistance locking in.

Asian stocks rose Tuesday as technology shares rallied and the prospect of solid corporate earnings helped counter concerns stemming from elevated inflation. The dollar declined. MSCI Inc.’s Asia-Pacific equity index was at its highest since late September. Hong Kong outperformed and the city’s gauge of Chinese tech stocks surpassed its 50-day moving average. U.S. and European futures were little changed after U.S. stocks gained, with the Nasdaq 100 leading the way.

European gas prices have risen sharply after Russia opted not to pump more gas into Europe even after President Vladimir Putin said he was prepared to boost supplies.

China’s Communist Party will prepare the ground for extending Xi Jinping's term as leader, with a coming Central Committee meeting set to approve a resolution that will heap praise on his achievements. Xi took a big gamble shaking up key industries ahead of the November gathering that could decide whether he rules the country indefinitely. Now, he’s dialling back on his sweeping economic overhaul somewhat, as the masses start to feel economic pain. Economists from Barclays to UBS cut their forecasts for China's economic growth after data showed a weakening in the third quarter and signs there could be further slowing in coming months.

FTSE 100 live outlook prediction analysis for 19th October 2021

So we got the dip and a bit of a rise for the FTSE100 but today looks to be starting a bit more positive. The S&P has consolidated its gains from yesterday and we may well see a bit of a sideways day on that as it continues to do so. A push up towards the top of the 20d Raff channel at 4522 still looks to be playing out. That should also help carry the FTSE100 up with it today/tomorrow.

I am still holding half the FTSE100 long from yesterday and will be looking to get the stop to breakeven as soon as possible this morning. The bounce off the 200ema at 7185 hasn't been that fast so far though so will be interesting to see if the bulls can do anything today. Holding 7200 will be a good sign for some more upside, despite a bear Tuesday backdrop!

Initial support is at the daily pivot at 7205 and then 7191 200ema below that. As mentioned at the start of this email the 2h chart has gone bearish again, and we have key resistance at 7245 that the bulls will need to break.

Below 7191 then 7171 is S1 and 7155 is the key fib - should the bears take control then we may well get a drop down this low, but lower down then the 25ema on the daily would likely get a retest at the 7120 level.

We are coming out of the seasonally weaker period (September/early-mid October) and so far seem to be following the pattern pretty well which suggests more upside to come over Q4.

Above the 7245 level then the 7263 R2 level is the next key level and I think that we could see a stutter here - a bit of longs banking here, and also the bears appearing. As such a short here is worth a go initially. Above this then we start getting near to the 7300 level and probably 7330 where we have daily resistance. I don't think we will get that high today though.

So, a bit of a sideways day I am thinking with 7265 - 7190 range in play. Good luck today.

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