Quote from Nick on 10th June 2021, 10:27 am

FTSE 100 live outlook prediction analysis for 10th June 2021

Once again the USA bulls failed to break above the 4235 level on the S&P500 and we are now back testing the 2h coral (now green) at 4224 as I write this. The 30min FTSE100 chart looks bullish to start with and we are also back at the 7100 level. A retest of the recent high at 7123 may well materialise this morning, and a hold of the 7078 support area that is showing with the 200ema, daily pivot, and a green 30m coral here.

The 2h S&P500 chart has gone bearish with resistance from the Hull moving average at 4233 so this level remains the line in the sand that the bulls will need to break today. R2 is at 4244 and then R3 and the key fib at 4252 though that may need today's data as the catalyst to help it get there!

7123 is also the key fib for today so we have a couple of key levels here, and just above the R1 level of 7113. A break of this will likely see a towards R3 and the top of the 10 day Raff at 7175. If cable continues to drop, and the S&P puts in its usual end of week rally then we may well see a rise towards this. Lots of chop still at the moment across the board though.

Below that support level of 7077 we would likely revisit yesterdays low and also S1 at 7050. Below that then the key fib is 7027, though this would mean a break of the 10 day Raff channel which has support at 7043 - the bulls would be keen to defend tis. Buying the dip does still remain the better play for the moment, though we still seem to be getting overshoots (stop hunts!?) of the key levels.

So looking at a dip and rise to pay out again today, bulls really need to step up to the plate today/tomorrow. Good luck today.

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

British Airways’ owner IAG was the best-performing stock on the FTSE 100, finishing up 6.5p at 204.5p. On the FTSE 250, travel firm Tui took second slot just ahead of Wizz Air, rising 13.6p to 430p, while easyJet gained 19.2p to 986.2p.

The gains were not enough for the indexes to close in positive territory, knocked by inflation fears as Chinese factory gate figures came in higher than expected. The FTSE 100 ended down a slight 14.1 points at 7,081.0 and the FTSE 250 fell 136.5 points to close at 22,758.9. Mining stocks also acted as a drag on the back of weaker commodity prices.

Helping to pare further losses was a steadily dropping pound caused by souring UK-EU relations. The index is full of companies that sell services in dollars, so it is often helped by a fall in the value of sterling, and equally harmed if the pound strengthens. Sterling was trading down around 0.1pc against two major currencies close to the end of play in London. One pound would buy $1.4121 or €1.1588. Currency traders had one eye on the negotiations between the UK and the European Union. Brussels has said it might take action if the UK Government does not stop breaking the section of the Brexit agreement the two sides struck over Northern Ireland.

Asian Session

Asian stocks rose Thursday as U.S.-China talks helped sentiment and bolstered the offshore yuan. Treasuries rallied ahead of a U.S. inflation report that may provide clues on the monetary policy outlook.

Japanese, Chinese and Hong Kong shares advanced along with U.S. equity contracts. The S&P 500 again flirted with a record before slipping, continuing a pattern of range-bound trading also evident at a global level.

The offshore yuan climbed after the Chinese and U.S. commerce ministers agreed to push forward trade and investment links in their first call since the start of President Joe Biden’s administration. Separately, Biden revoked Trump-era bans on TikTok and WeChat. He ordered a review of software apps from foreign adversaries and action against those that pose a security risk.

The 10-year Treasury yield extended a slide below 1.5%, signaling support for the view that the rebound from the pandemic will stoke only a transient bout of elevated inflation. Australia’s 10-year yield declined. The dollar was steady.

Traders are waiting to see if the upcoming U.S. inflation print changes perceptions of when the Federal Reserve might begin talks about tapering asset purchases. Global equities for now are hovering around an all-time high. Meme-stock frenzy and gyrations in cryptocurrencies are among the few sources of pronounced volatility. [Bloomberg]

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