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Can they hold 8000 | 8046 8055 8075 resistance | 7990 7950 support

#1 · 16th February 2023, 10:02 am

Quote from Nick on 16th February 2023, 10:02 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 16th February 2023
Check out IG for trading https://refer.ig.com/iA6I8q
The FTSE 100 has passed 8,000 points for the first time in history as the plummeting pound sees shares in the UK’s biggest companies soar. The index reached a new intraday high of 8,003.66 on Wednesday, recovering after plunging to a low of 7,921.32 during early trading as investors absorbed new inflation data.
The internationally focused FTSE 100 surged as the pound fell 1.5pc against the dollar after data indicated the Bank of England is likely to maintain its path on interest rates while the US Federal Reserve may have to keep rates higher for longer. A bigger-than-expected drop in inflation in January raised expectations that the Bank of England may end its run of 10 consecutive interest rate rises soon.
Asia's stocks rose on Thursday, with investors choosing to cheer strong U.S. retail sales data as good news for earnings rather than worry about it being likely to support interest rate rises.
With 8000 locking in now the bulls will be keen to continue to build on this, so a rise towards the top of the 20d Raff channel continues, with resistance from that today at 8075. Can they get that high today? There is a cluster of resistance levels at the 8050 area with the key fib and R1 here, so we may well see any early rise falter here, for a drop down to test the 8000 level again, and possibly down to the next main support area at 7990.
We were talking about this in the chat room yesterday but the market can often overshoot a really major level (8k in this case) before reality kicks in and it drops back (or rises as the case may be if it's a support level). As such, that the 8050 level does look like it may be a decent overshoot area.
Above the 8055 R1 level then the bulls will be aiming for 8075 as mentioned but then we also have R2 at 8090 for today. Seems a big ask of the back of the recent rises but you never know! The pound dropping off is certainly helping the more internationally focussed FTSE100, along with bumper profits for its main constituents, the energy companies.
For the bears, they will be aiming to break and hold below 8000, though as mentioned I am expecting that 7990 to get a reaction. Below that then the 7952 level is the next major support and with the S1 and 30m 200ema here I would expect any test of that today to hold.
That said, 7990 is also the Hull MA support for today so also lends weight to this holding at least initially.
We have central bankers from the ECB and BOE talking later so traders will be looking for interest rate clues from that.
Still buy the dips for the moment as the bulls remain in charge, though I am watching that 8050 area closely for a reaction.
Good luck today.
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FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 16th February 2023

Check out IG for trading https://refer.ig.com/iA6I8q

The FTSE 100 has passed 8,000 points for the first time in history as the plummeting pound sees shares in the UK’s biggest companies soar. The index reached a new intraday high of 8,003.66 on Wednesday, recovering after plunging to a low of 7,921.32 during early trading as investors absorbed new inflation data.

The internationally focused FTSE 100 surged as the pound fell 1.5pc against the dollar after data indicated the Bank of England is likely to maintain its path on interest rates while the US Federal Reserve may have to keep rates higher for longer. A bigger-than-expected drop in inflation in January raised expectations that the Bank of England may end its run of 10 consecutive interest rate rises soon.

Asia's stocks rose on Thursday, with investors choosing to cheer strong U.S. retail sales data as good news for earnings rather than worry about it being likely to support interest rate rises.

With 8000 locking in now the bulls will be keen to continue to build on this, so a rise towards the top of the 20d Raff channel continues, with resistance from that today at 8075. Can they get that high today? There is a cluster of resistance levels at the 8050 area with the key fib and R1 here, so we may well see any early rise falter here, for a drop down to test the 8000 level again, and possibly down to the next main support area at 7990.

We were talking about this in the chat room yesterday but the market can often overshoot a really major level (8k in this case) before reality kicks in and it drops back (or rises as the case may be if it's a support level). As such, that the 8050 level does look like it may be a decent overshoot area.

Above the 8055 R1 level then the bulls will be aiming for 8075 as mentioned but then we also have R2 at 8090 for today. Seems a big ask of the back of the recent rises but you never know! The pound dropping off is certainly helping the more internationally focussed FTSE100, along with bumper profits for its main constituents, the energy companies.

For the bears, they will be aiming to break and hold below 8000, though as mentioned I am expecting that 7990 to get a reaction. Below that then the 7952 level is the next major support and with the S1 and 30m 200ema here I would expect any test of that today to hold.

That said, 7990 is also the Hull MA support for today so also lends weight to this holding at least initially.

We have central bankers from the ECB and BOE talking later so traders will be looking for interest rate clues from that.

Still buy the dips for the moment as the bulls remain in charge, though I am watching that 8050 area closely for a reaction.

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