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Dip and rise today with a bear Tuesday later | 7855 7826 support | 7912 7921 resistance

#1 · 2nd May 2023, 9:44 am

Quote from Nick on 2nd May 2023, 9:44 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 3rd May 2023
Asian shares wobbled in cautious trade on Tuesday ahead of a series of data releases and central bank meetings, which began with a surprise rate hike in Australia that boosted the local dollar. Markets were positioned for Australia's central bank to stay on hold and a 25 basis point hike sent the Aussie dollar up about 0.8% to its highest in a week at $0.6692. Three-year Aussie government bond yields also jumped, while Australian stocks slipped 0.7%.
Elsewhere there were jitters at short tenors in the U.S. Treasury market as the government's borrowing ceiling looms, and MSCI's broadest index of Asia-Pacific shares outside Japan was flat. Mainland China markets were closed. Japan's Nikkei hit a 16-month high, before backing off slightly, with the bank sector a drag.
First day back after the long weekend in the UK, and ahead of another short week next week, so it might well be a bit more jittery. We had a bit of a new month money kick up yesterday to start with, and we could see any drop today get bought up as well. The 2h chart looks favourable for the bulls with decent support at the 7850 area from both a green coral and the Hull MA, so should we get an early dip to that I would like to see a bounce here.
That bounce may well get as far as the higher daily resistance level at 7912 we had from Friday as well. Interestingly the 7921 level is flagging up again, this time with R3 and the top of the 10d Raff channel so should we see that then a would expect to see a reaction here, mainly as its been so key in recent weeks.
We dropped off the 7890 resistance level yesterday, and that had also flagged up on Fridays analysis last week, so that is the initial line in the sand this morning that the bulls will need to break.
Above 7921 then the bulls may well be aiming for another test of the 8000 level soon, before a bit of "Sell in May" kicks in towards the end of the month. The S&P500 has recovered well from its 4050 level last week, and the bulls are definitely fighting hard on that. Likewise the FTSE100 tested that 25ema on the daily at 7790 we have mentioned a few times and has seen a decent reaction.
Support wise today, then the 7850 area as mentioned is fairly key to start with, but should the bears break below this then 7815 would be another test of the daily 25ema. That is also just below S3 at 7826 today, so I would expect a move this low to hold. Could also coincide with the S&P dropping down to the 4150 level and bouncing.
The 30m chart is actually fairly positive to stat with today, and has a green coral support at the 7875 level, along with the daily pivot here. Who will be first out the blocks - bulls or bears? I think a dip and rise would play out pretty well today.
Good luck!
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FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 3rd May 2023

Asian shares wobbled in cautious trade on Tuesday ahead of a series of data releases and central bank meetings, which began with a surprise rate hike in Australia that boosted the local dollar. Markets were positioned for Australia's central bank to stay on hold and a 25 basis point hike sent the Aussie dollar up about 0.8% to its highest in a week at $0.6692. Three-year Aussie government bond yields also jumped, while Australian stocks slipped 0.7%.

Elsewhere there were jitters at short tenors in the U.S. Treasury market as the government's borrowing ceiling looms, and MSCI's broadest index of Asia-Pacific shares outside Japan was flat. Mainland China markets were closed. Japan's Nikkei hit a 16-month high, before backing off slightly, with the bank sector a drag.

First day back after the long weekend in the UK, and ahead of another short week next week, so it might well be a bit more jittery. We had a bit of a new month money kick up yesterday to start with, and we could see any drop today get bought up as well. The 2h chart looks favourable for the bulls with decent support at the 7850 area from both a green coral and the Hull MA, so should we get an early dip to that I would like to see a bounce here.

That bounce may well get as far as the higher daily resistance level at 7912 we had from Friday as well. Interestingly the 7921 level is flagging up again, this time with R3 and the top of the 10d Raff channel so should we see that then a would expect to see a reaction here, mainly as its been so key in recent weeks.

We dropped off the 7890 resistance level yesterday, and that had also flagged up on Fridays analysis last week, so that is the initial line in the sand this morning that the bulls will need to break.

Above 7921 then the bulls may well be aiming for another test of the 8000 level soon, before a bit of "Sell in May" kicks in towards the end of the month. The S&P500 has recovered well from its 4050 level last week, and the bulls are definitely fighting hard on that. Likewise the FTSE100 tested that 25ema on the daily at 7790 we have mentioned a few times and has seen a decent reaction.

Support wise today, then the 7850 area as mentioned is fairly key to start with, but should the bears break below this then 7815 would be another test of the daily 25ema. That is also just below S3 at 7826 today, so I would expect a move this low to hold. Could also coincide with the S&P dropping down to the 4150 level and bouncing.

The 30m chart is actually fairly positive to stat with today, and has a green coral support at the 7875 level, along with the daily pivot here. Who will be first out the blocks - bulls or bears? I think a dip and rise would play out pretty well today.

Good luck!

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