Quote from Nick on 3rd June 2021, 10:16 am

FTSE 100 live outlook prediction analysis for 3rd June 2021

It was a fairly quiet day on the FTSE100 yesterday, with news that ITV will be reshuffled into the FTSE 100 next month, as engineer Renishaw drops out. ITV re-secured its place in the FTSE 100 amid a recovery in advertising spending, after dropping into the mid-caps last year as the pandemic took out the bottom of the market last year. The blue-chip index made only small gains, continue a general trend of slight rises amid a mildly risk-on mood on markets.

The pound shook off some midday nerves to make small gains against the dollar – another sign of the nervous, but not negative, mood on markets yesterday.

Blacklist Changes

President Joe Biden plans to amend a U.S. ban on investments in companies linked to China’s military this week, after the Trump-era policy was challenged in court and left investors confused about the extent of its reach to subsidiary firms. Under Biden’s amended order, the Treasury Department will create a list of companies that could face financial penalties for their connection to China’s defense and surveillance technology sectors. Until now, the financial sanctions and selection of targeted companies were tied to a congressionally-mandated Defense Department report.

Frayed Relations

Of all the issues that have roiled ties between China and the West since the pandemic emerged, none has been more sensitive in Beijing than questions about the origin of Covid-19. U.S. President Joe Biden revived the lab theory last week by giving intelligence agencies 90 days to get closer to a definitive conclusion on the origin of the coronavirus. It comes at a sensitive time in U.S.-China relations, with both governments showing signs they want to move beyond the vitriol that marked the last year of Donald Trump’s presidency.

Asian Session

Most Asian stocks climbed Thursday and U.S. equity contracts were steady, weathering the latest twist in U.S.-China ties as well as Federal Reserve comments on a potential reduction in stimulus.

Optimism over a vaccine rollout boosted Japanese equities, while China edged up and Hong Kong retreated. S&P 500 and Nasdaq 100 futures were marginally in the green after the gauges posted a modest increase. Ten-year U.S. Treasury yields held below 1.60% and a dollar gauge fluctuated.

Traders took in their stride comments from Philadelphia Fed President Patrick Harker, who said the U.S. central bank should begin discussing the time frame for paring back its bond-buying program. Friday’s U.S. jobs report may offer clues on the economic rebound from the pandemic and inflation risks.

Chinese shares shrugged off President Joe Biden’s plans to amend a U.S. ban on investments in companies linked to China’s military, which may expand scrutiny to a wider set of enterprises.

Markets are grappling with a range of cross-currents, including the risk that inflation could prove sticky, the prospect of a gradual reduction in emergency stimulus and speculative fervor emerging again in so-called meme stocks like AMC Entertainment Holdings Inc. Global equities, meanwhile, are hovering at record levels after a powerful rally from pandemic lows.[Bloomberg]

(adsbygoogle = window.adsbygoogle || []).push({});

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

The market has been treading water really this week but still has the bullish bias and a rise towards 7250 and the top of the 20 day Raff channel is still on the cards. The 2 hour chart is bullish again, with support at at 7085 to start with today. We also have a green coral support on the 2 hour at 7058 and rising, so any dips to these areas are worth longs.

The S&P has held above the 4200 level for the moment and a rise towards the R2 level at 4230 today looks to be on the cards. Currently looks bullish across the board to start with today so it will be interesting to see if the bulls defend from the off.

Also looking at decent support on the Dax at 15590 level with both the daily pivot and the 2h Hull moving average here.

Initial resistance on the FTSE 100 is at the 7128 level where we have R1 and a fib level. Its also resistance on my daily chart from a while back so will be watching this level for an initial reaction this morning - we may well get the dip off this down to the support  at the 7100 area before we rise from there.

Above 7130 and then I am looking at 7153 to 7163 area as we have R2 and the top of the 10 day Raff channel here, and then above this the R3 level at 7184 - the FTSE100 will have to be a bit more mobile than it has so far this week to get that high though. A test of the 7160 area may well coincide with the S&P hitting the 4230 level and then a dip back from there though.

Below 7100 and then I am looking at 7070 where we have the 200ema and S1 - the bulls will be keen to defend this and keep the price away from the 7000 level and we can get a bit more upside as we head towards mid June and the seasonal dip around that time.

So, still holding a bullish stance for the moment, watching 7130 and 7160 for resistance, 7100 and 7070 for support. 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

[yikes-mailchimp form="4"]