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Dip and rise today with 6690 6720 resistance | 6640 6605 support | Pound eases

#1 · 25th February 2021, 9:51 am

Quote from Nick on 25th February 2021, 9:51 am
FTSE 100 live outlook prediction analysis for 25th February 2021
The FTSE 100 shook off a bout of early underperformance to post a moderate gain, with international earners recovering initial losses as the pound eased back, having broken through $1.42 overnight.

Travel-linked stocks continued to rise on a reopening play, with Rolls-Royce and International Consolidated Airlines among top blue-chip climbers, while Tui, Carnival and easyJet all performed well on the FTSE 250.
A Long Way
Federal Reserve Chair Jerome Powell emphasized that the U.S. economy has a long way to go and signs of prices rising won’t necessarily lead to persistently high inflation. “Our policy is accommodative because unemployment is high and the labor market is far from maximum employment,” he told the House Financial Services Committee. Powell pointed to examples like car prices rising because of a chip shortage, and supply-chain constraints in the tech industry. Meanwhile, the $9 trillion rescue mission by central banks to improve the global economy is being tested as rising bond yields and inflation bets threaten their ability to keep borrowing costs down.
Soothing Words
Asian stocks looked set to rise after U.S. equities reversed losses on encouraging vaccine news and Powell's soothing comments on inflation. Futures pointed higher in Japan, Australia and Hong Kong. Energy and industrial stocks led gains in the S&P 500 Index, offsetting weakness in tech shares. Elsewhere, the 10-year Treasury yield surged as much as ten basis points to its highest level in a year before pulling back. The dollar weakened against its major peers, commodity currencies advanced and crude oil jumped to the highest in more than a year.
Playing Catchup
After sitting on the sidelines as the U.S. and Europe plowed headlong into vaccinating against Covid-19, Asia is finally starting to administer shots.
Hong Kong began its program Monday, with Beijing-based Sinovac’s product. Japan, Australia and New Zealand are vaccinating priority groups with shots from Pfizer-BioNTech and AstraZeneca, while Malaysia kicked off its drive on Wednesday, South Korea is due to start Friday and Thailand a few days later. Meanwhile Qantas announced it aims to restart international travel in October, Johnson & Johnson’s vaccine is safe and effective according to U.S. regulators, and Moderna is exploring how booster shots can beat virus variants.[Bloomberg]
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US & Asia Overnight from Bloomberg
Bonds sold off and Asian stocks rallied as investors focused on the prospects of a stronger-than-expected recovery and the Federal Reserve’s pledges of prolonged support. U.S. and European equity futures advanced.
The 10-year Treasury yield climbed to the highest in a year, while Japan’s longer-dated benchmarks rose to multiyear records. Australian yields jumped despite the central bank buying bonds for the second time this week to defend its three-year yield target. Stocks rose across the region, led by Hong Kong and South Korea. Earlier, the S&P 500 closed the U.S. session higher despite weakness in tech shares.
Crude oil remained close to a one-year peak as traders see supply tightening with demand returning. Base metals advanced on the recovery optimism, with copper and aluminum both spiking to the highest since 2011.
Powell pushed back on inflation concerns in his second day of Congressional testimony, and Fed Vice Chair Richard Clarida said he sees the central bank maintaining its current pace of bond purchases for the rest of the year. The equity market is focusing on the benefits to corporate earnings of a post-pandemic surge in economic activity, while mindful that higher inflation and interest rates could dent the appeal of stocks.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
It's looking like we may well get a dip and rise today, as the S&P has put in a bullish shift overnight but is now at resistance at the 3935 level. If that drops down to the daily pivot at 3909 and possibly the 200ema at 3900 then we may well see a bounce here. There is now 2h support just below that at 3880 where we have the now green coral line. Not sure it will shed that much to test that today though.
For the FTSE 100, we are just testing the daily level that we have been looking for this week at 6688 and again, we may see a dip down from here to test the daily pivot level at 6660. We also have the key fib and 200ema here, so it would be a good level to see a bounce from.
Should the bears break below 6660 then S1 at 6602 would be the next level of note for support. We also have the now green coral on the 2h chart around here at 6606 and the Hull MA at 6603 (though not the first test of this). This latter support line has been holding well this week.
For the bulls, above the 6688 level we have a cluster of resistance levels at 6720, and also the daily coral line (red). With R1 also here we may well see a reaction, though above this 6758 R2 would be the next level to look for. Can they get that high today though? Can see the S&P cooling off a bit, at least initially, and as such higher than 6720 might be a big ask for today.
So, not much more to say, looking at a drop off 6688 to start with, 6635ish as support, 6600 below that. 6720 as the main resistance level.
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 25th February 2021

The FTSE 100 shook off a bout of early underperformance to post a moderate gain, with international earners recovering initial losses as the pound eased back, having broken through $1.42 overnight.

Travel-linked stocks continued to rise on a reopening play, with Rolls-Royce and International Consolidated Airlines among top blue-chip climbers, while Tui, Carnival and easyJet all performed well on the FTSE 250.

A Long Way

Federal Reserve Chair Jerome Powell emphasized that the U.S. economy has a long way to go and signs of prices rising won’t necessarily lead to persistently high inflation. “Our policy is accommodative because unemployment is high and the labor market is far from maximum employment,” he told the House Financial Services Committee. Powell pointed to examples like car prices rising because of a chip shortage, and supply-chain constraints in the tech industry. Meanwhile, the $9 trillion rescue mission by central banks to improve the global economy is being tested as rising bond yields and inflation bets threaten their ability to keep borrowing costs down.

Soothing Words

Asian stocks looked set to rise after U.S. equities reversed losses on encouraging vaccine news and Powell's soothing comments on inflation. Futures pointed higher in Japan, Australia and Hong Kong. Energy and industrial stocks led gains in the S&P 500 Index, offsetting weakness in tech shares. Elsewhere, the 10-year Treasury yield surged as much as ten basis points to its highest level in a year before pulling back. The dollar weakened against its major peers, commodity currencies advanced and crude oil jumped to the highest in more than a year.

Playing Catchup

After sitting on the sidelines as the U.S. and Europe plowed headlong into vaccinating against Covid-19, Asia is finally starting to administer shots.
Hong Kong began its program Monday, with Beijing-based Sinovac’s product. Japan, Australia and New Zealand are vaccinating priority groups with shots from Pfizer-BioNTech and AstraZeneca, while Malaysia kicked off its drive on Wednesday, South Korea is due to start Friday and Thailand a few days later. Meanwhile Qantas announced it aims to restart international travel in October, Johnson & Johnson’s vaccine is safe and effective according to U.S. regulators, and Moderna is exploring how booster shots can beat virus variants.[Bloomberg]

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US & Asia Overnight from Bloomberg

Bonds sold off and Asian stocks rallied as investors focused on the prospects of a stronger-than-expected recovery and the Federal Reserve’s pledges of prolonged support. U.S. and European equity futures advanced.

The 10-year Treasury yield climbed to the highest in a year, while Japan’s longer-dated benchmarks rose to multiyear records. Australian yields jumped despite the central bank buying bonds for the second time this week to defend its three-year yield target. Stocks rose across the region, led by Hong Kong and South Korea. Earlier, the S&P 500 closed the U.S. session higher despite weakness in tech shares.

Crude oil remained close to a one-year peak as traders see supply tightening with demand returning. Base metals advanced on the recovery optimism, with copper and aluminum both spiking to the highest since 2011.

Powell pushed back on inflation concerns in his second day of Congressional testimony, and Fed Vice Chair Richard Clarida said he sees the central bank maintaining its current pace of bond purchases for the rest of the year. The equity market is focusing on the benefits to corporate earnings of a post-pandemic surge in economic activity, while mindful that higher inflation and interest rates could dent the appeal of stocks.

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

It's looking like we may well get a dip and rise today, as the S&P has put in a bullish shift overnight but is now at resistance at the 3935 level. If that drops down to the daily pivot at 3909 and possibly the 200ema at 3900 then we may well see a bounce here. There is now 2h support just below that at 3880 where we have the now green coral line. Not sure it will shed that much to test that today though.

For the FTSE 100, we are just testing the daily level that we have been looking for this week at 6688 and again, we may see a dip down from here to test the daily pivot level at 6660. We also have the key fib and 200ema here, so it would be a good level to see a bounce from.

Should the bears break below 6660 then S1 at 6602 would be the next level of note for support. We also have the now green coral on the 2h chart around here at 6606 and the Hull MA at 6603 (though not the first test of this). This latter support line has been holding well this week.

For the bulls, above the 6688 level we have a cluster of resistance levels at 6720, and also the daily coral line (red). With R1 also here we may well see a reaction, though above this 6758 R2 would be the next level to look for. Can they get that high today though? Can see the S&P cooling off a bit, at least initially, and as such higher than 6720 might be a big ask for today.

So, not much more to say, looking at a drop off 6688 to start with, 6635ish as support, 6600 below that. 6720 as the main resistance level.

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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