Discussion Forum for trading analysis, help, signals and learning how to trade. Chat with other traders , post analysis, trades and ask questions. This is the public part of my website. For more in-depth discussions please consider joining to chat with other members

ForumTrading Forum with market discussion and live trades: Market DiscussionFTSE drops off 6610 but might be …

Please or Register to create posts and topics.

FTSE drops off 6610 but might be poised for a push higher | 6580 6620 6630 resistance | 6550 support

#1 · 10th December 2020, 10:17 am

Quote from Nick on 10th December 2020, 10:17 am
FTSE 100 live outlook prediction analysis for 10th December 2020
The bears took control at the 6620 level for a nearly 100 point drop, amid a wider sell off on all markets. The bull run on the S&P ended without a test of the 3730 level, dropping from 3715 instead. That said, it needed to pull back just to reset the RSI's which have been a bit overbought for a while now. Still at 61 on the daily RSI(10) though so scope for a bit more downside still.
Amazon.co.uk Widgets
There has also been a bit of a rush of floatations on Wall Street this week - usually a sign that we are at the top! Doordash, AirBnB to name just two.
China's Blacklist
China is making swift advances with a system for measuring the social creditworthiness of companies in a sweeping data-collection effort covering foreign and domestic enterprises. Compiling this information is aimed at allowing government officials, banks, suppliers and consumers to check on a company’s behavior. Corporate actions could be analyzed, potentially leading to rewards like lower taxes and government contracts or punishments like fines and prohibitions on activities. There's already one blacklist that companies are paying $2,500 an hour to avoid. Here's why foreign firms are walking on eggshells in China.
Markets Fall
Asian stocks looked poised for declines after U.S. technology giants dragged Wall Street benchmarks lower amid dimming prospects for fresh stimulus. Treasury yields ticked higher. Futures pointed lower in Japan, Hong Kong and Australia. The S&P 500 slid from a record, while the Nasdaq 100 had its biggest slump in a month. The dollar edged up, while gold retreated. Elsewhere, traders were also watching for developments on Brexit amid ongoing talks in Brussels. Crude oil fluctuated.[Bloomberg]
(adsbygoogle = window.adsbygoogle || []).push({});
US & Asia Overnight from Bloomberg
Asian stocks slipped Thursday after U.S. technology giants dragged Wall Street benchmarks down amid dimming prospects for fresh stimulus. Treasury yields ticked lower.
Stocks saw modest declines across the region, though Chinese equities edged higher. S&P 500 futures were little changed after the gauge slid from a record, and the Nasdaq 100 had its biggest slump in a month. Facebook Inc. sank after being sued by U.S. antitrust officials, while Tesla Inc. tumbled as JPMorgan Chase & Co. called it “dramatically” overvalued. The dollar was steady and the pound fell amid a stalemate in Brexit negotiations.
Talks between U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen ended without a breakthrough on Wednesday night as large gaps remain between the two sides. They agreed to continue talks over the next few days. Meantime, iron ore futures jumped to more than $150 a ton, while crude oil edged higher.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Pullback in the bull run or has the worm turned for the moment? I'm tending to favour the former, and we can get away from he extreme greed and overbought status before a push back up towards year end. As mentioned above those, a flurry of IPOs usually coincides with market tops and once again that fits. The S&P failed to really hold above the 3705 level and looks to now be heading for support at 3640 if 3660 breaks - that held last night - and a test of the 20d Raff channel. The 10 day Raff channel is just above at 3650 so some decent support around that area. Will it hold as it look like it will be tested today...?
That could well coincide with the FTSE 100 dropping down to retest the 6535 area that held as support yesterday evening, and we have the key fib, 200ema and S1 here for today. If that holds then we could well get a pop back up to the daily pivot at 6580, and we also have the 30min coral here, along with the 2h coral as well. Not the first test of that 2h coral since breaking below, however, if it turns red today then it becomes stronger resistance. The Hull MA resistance remains at the 6603 level.
For the bulls they will be keen to break above 6580 as that opens up a move back above the 6600 level and yesterday's high, along with R1 at 6618. Above that then the key fib is 6630 and could well get tested. Ironically we have retraced a bit of yesterday's decline already and if as mentioned, I am favouring a small pullback before a year end climb, and maybe 6530 is as low as we go for the moment. The bulls will certainly be keen to defend that overnight low if we see it again. Both the Raff channels remain heading upwards.
For the bears, they will be looking to stop it going much higher than 6580 where we have the daily pivot. Additionally, a break of the 6530 level will likely see them aim for the S2 level 6492, and possibly the bottom of the 10 day Raff channel, at 6440 - also just below S3 at 6446.
Of course we have Boris in Brussels at the moment talking Brexit deals, and that is liable to lead to a bit of volatility as news comes out from that. Still at loggerheads at the moment, and with Brexit day looming on the 31st December, we will either have no deal or something at the 11th hour.
So looking at 6580 and 6630 as the main resistance levels for today. 6540 and 6492 as the main supports. Stay nimble and 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"]

FTSE 100 live outlook prediction analysis for 10th December 2020

The bears took control at the 6620 level for a nearly 100 point drop, amid a wider sell off on all markets. The bull run on the S&P ended without a test of the 3730 level, dropping from 3715 instead. That said, it needed to pull back just to reset the RSI's which have been a bit overbought for a while now. Still at 61 on the daily RSI(10) though so scope for a bit more downside still.
Amazon.co.uk Widgets
There has also been a bit of a rush of floatations on Wall Street this week - usually a sign that we are at the top! Doordash, AirBnB to name just two.

China's Blacklist
China is making swift advances with a system for measuring the social creditworthiness of companies in a sweeping data-collection effort covering foreign and domestic enterprises. Compiling this information is aimed at allowing government officials, banks, suppliers and consumers to check on a company’s behavior. Corporate actions could be analyzed, potentially leading to rewards like lower taxes and government contracts or punishments like fines and prohibitions on activities. There's already one blacklist that companies are paying $2,500 an hour to avoid. Here's why foreign firms are walking on eggshells in China.

Markets Fall
Asian stocks looked poised for declines after U.S. technology giants dragged Wall Street benchmarks lower amid dimming prospects for fresh stimulus. Treasury yields ticked higher. Futures pointed lower in Japan, Hong Kong and Australia. The S&P 500 slid from a record, while the Nasdaq 100 had its biggest slump in a month. The dollar edged up, while gold retreated. Elsewhere, traders were also watching for developments on Brexit amid ongoing talks in Brussels. Crude oil fluctuated.[Bloomberg]

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

US & Asia Overnight from Bloomberg

Asian stocks slipped Thursday after U.S. technology giants dragged Wall Street benchmarks down amid dimming prospects for fresh stimulus. Treasury yields ticked lower.

Stocks saw modest declines across the region, though Chinese equities edged higher. S&P 500 futures were little changed after the gauge slid from a record, and the Nasdaq 100 had its biggest slump in a month. Facebook Inc. sank after being sued by U.S. antitrust officials, while Tesla Inc. tumbled as JPMorgan Chase & Co. called it “dramatically” overvalued. The dollar was steady and the pound fell amid a stalemate in Brexit negotiations.

Talks between U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen ended without a breakthrough on Wednesday night as large gaps remain between the two sides. They agreed to continue talks over the next few days. Meantime, iron ore futures jumped to more than $150 a ton, while crude oil edged higher.

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

Pullback in the bull run or has the worm turned for the moment? I'm tending to favour the former, and we can get away from he extreme greed and overbought status before a push back up towards year end. As mentioned above those, a flurry of IPOs usually coincides with market tops and once again that fits. The S&P failed to really hold above the 3705 level and looks to now be heading for support at 3640 if 3660 breaks - that held last night - and a test of the 20d Raff channel. The 10 day Raff channel is just above at 3650 so some decent support around that area. Will it hold as it look like it will be tested today...?

That could well coincide with the FTSE 100 dropping down to retest the 6535 area that held as support yesterday evening, and we have the key fib, 200ema and S1 here for today. If that holds then we could well get a pop back up to the daily pivot at 6580, and we also have the 30min coral here, along with the 2h coral as well. Not the first test of that 2h coral since breaking below, however, if it turns red today then it becomes stronger resistance. The Hull MA resistance remains at the 6603 level.

For the bulls they will be keen to break above 6580 as that opens up a move back above the 6600 level and yesterday's high, along with R1 at 6618. Above that then the key fib is 6630 and could well get tested. Ironically we have retraced a bit of yesterday's decline already and if as mentioned, I am favouring a small pullback before a year end climb, and maybe 6530 is as low as we go for the moment. The bulls will certainly be keen to defend that overnight low if we see it again. Both the Raff channels remain heading upwards.

For the bears, they will be looking to stop it going much higher than 6580 where we have the daily pivot. Additionally, a break of the 6530 level will likely see them aim for the S2 level 6492, and possibly the bottom of the 10 day Raff channel, at 6440 - also just below S3 at 6446.

Of course we have Boris in Brussels at the moment talking Brexit deals, and that is liable to lead to a bit of volatility as news comes out from that. Still at loggerheads at the moment, and with Brexit day looming on the 31st December, we will either have no deal or something at the 11th hour.

So looking at 6580 and 6630 as the main resistance levels for today. 6540 and 6492 as the main supports. Stay nimble and 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"]