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Dip and rise today with decent divi this week | 7148 7132 7122 support 7172 7197 7202 resistance

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

Seems a while ago now but Friday saw Federal Reserve Chair Jerome Powell say the central bank could begin reducing its monthly bond purchases this year, although stressed there is "much ground to cover" before interest rates are hiked.

Powell said Friday in the virtual speech at the Kansas City Fed’s annual Jackson Hole symposium: "My view is that the substantial further progress test has been met for inflation. There has also been clear progress toward maximum employment."

FTSE 100 live outlook prediction analysis for 31st August 2021

Day after the bank holiday so may be a slightly interesting one and we may well skip having too much of a bear Tuesday, The FTSE dipped down overnight to the 2h coral line support/30m 200ema at 7140 and that has seen a positive reaction and we may well get a similar pattern this morning. S1 is at 7147 and the bulls will be keen to build on the US upside that prevailed yesterday.

The S&P500 looks to be on track to test the 4555 R2 level today and just below the key fib at 4557 so we may well see some bears have a tentative go here and see if it sticks. The momentum across the board remains bullish for the moment, including gold after its little flush down to the 1700 level in early August.

Initially we have a red 30m coral on the FTSE following that dip overnight, albeit a small one, though the futures have pushed through the resistance level at 7163 already. As we have R1 just above this at 7172 and we are also double topping with yesterdays price, I think we may well see an initial dip down and a reaction at this area.

That would also tally with the S&P500 and the Dax reacting at R1 to start with which they are both at as I write this.

The bulls will look to defend the 7150 level where we have S1 and a push towards 7200 looks to be on the cards today. We have R3 at 7197 along with daily resistance just below that but also the key fib at 7202 - as such should we see a rise to this area then the bears may well appear here. We are also once again getting near to the recent high area at 7220 which may well act as resistance once again.

Above the 7202 level then the bulls have quite a clear run to push it up towards the top of the 10 day Raff channel at 7270.

If the bears were to break below the 7150 level then 7132 is S2 and 7122 is S3 - this lower level should act as decent support if it were to get down there, but we also have the key fib support at 7109 below that. The bulls will also be keen to defend the 7100 round number too.

If the S&P bulls do go for a push up toward the 4555 area then it should pull the FTSE100 with it, and after being closed yesterday there is less impetus for a bear Tuesday.

Good luck today.

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Asian Session

Asian stocks were mixed Tuesday as weaker economic activity in China and the latest escalation in Beijing’s crackdown on private industries overshadowed another record close on Wall Street.

Equities slipped in China, where data signaled that an outbreak of the delta virus variant led to a service-sector contraction for the first time since February last year. Hong Kong slid as Beijing’s stepped-up curbs on video-gaming firms weighed on Chinese technology stocks.

U.S. futures edged up after the S&P 500 hit its 12th all-time high in August and the Nasdaq 100 rose. Treasuries held gains made following Federal Reserve Chair Jerome Powell’s measured comments about a possible reduction in stimulus and any future interest-rate hikes. The dollar dipped.

Oil declined, with traders assessing the prospect of additional OPEC+ production. Aluminum and nickel advanced as Goldman Sachs Group Inc. raise target prices. In cryptocurrencies, Bitcoin fell to about $47,000.

Global stocks overall are set for a seventh monthly advance on strong company profits, expanding vaccinations to underpin economic reopening and supportive Fed policies. At the same time, the decline in Treasury yields from a March peak may partly reflect concerns of a slower recovery ahead on risks such as the impact of the delta strain. [Bloomberg]

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