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Monster rally so pullback due | 7420 7465 resistance | 7375 7351 7305 support

#1 · 11th November 2022, 10:15 am

Quote from Nick on 11th November 2022, 10:15 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 11th November 2022
Global stocks extended gains as China’s easing of quarantine rules added fuel to the rally that began on Wall Street after slower-than-projected US inflation data. Asian shares spiked higher on Friday, while the dollar nursed steep losses after a smaller-than-expected increase in U.S. consumer prices fuelled hopes that the Federal Reserve could tone down its aggressive pace of interest rate hikes.
Wall Street enjoyed its biggest surge in two years and sterling rocketed versus the dollar after a surprise cooling in US inflation boosted hopes of a lower peak for interest rates.
Well, what to say, we were right to be maintaining a bullish stance but that was a monster rally yesterday which has made everything look bullish. Which probably means that we will see pull back as it has climbed too far too fast.
A glance at the seasonal chart has the strong start for November fizzling out a bit towards mid month and then the rally to resume at the beginning of December, and having followed that seasonal chart well this year it looks like we may well get the same in this quarter.
Initially we may well get a dip down to the 30m green coral at the 7370 area and I would like to see this hold for a climb towards the 7465 level. This level is strong daily resistance and as such we may well see some profit taking here and some bears appear ahead of the weekend.
Usual caveat applies though as its Friday which means it can be a bit odd. UK GDP data that has just come out shows that the economy contracted last quarter in the first step towards an official recession.
Below the 7370 level then we have the daily pivot at the 7351 level, with the 30m 200ema and key fib at 7305 below that. Should it get there then a bounce here would make sense.
The 2h chart has support higher up though at 7340 having gone bullish again after yesterday!
Resistance wise 7465 is the main one, with 7510 above that where we have R2 and the 20d Raff channel top. I don't think we will push past that today and in fact may see the FTSE100 take a bit of a breather today.
Could be. slightly interesting day and need to see if that rally is built on sand or more solid foundations and fully expect a bit of a retrace.
Good luck today and have a great weekend.
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FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 11th November 2022

Global stocks extended gains as China’s easing of quarantine rules added fuel to the rally that began on Wall Street after slower-than-projected US inflation data. Asian shares spiked higher on Friday, while the dollar nursed steep losses after a smaller-than-expected increase in U.S. consumer prices fuelled hopes that the Federal Reserve could tone down its aggressive pace of interest rate hikes.

Wall Street enjoyed its biggest surge in two years and sterling rocketed versus the dollar after a surprise cooling in US inflation boosted hopes of a lower peak for interest rates.

Well, what to say, we were right to be maintaining a bullish stance but that was a monster rally yesterday which has made everything look bullish. Which probably means that we will see pull back as it has climbed too far too fast.

A glance at the seasonal chart has the strong start for November fizzling out a bit towards mid month and then the rally to resume at the beginning of December, and having followed that seasonal chart well this year it looks like we may well get the same in this quarter.

Initially we may well get a dip down to the 30m green coral at the 7370 area and I would like to see this hold for a climb towards the 7465 level. This level is strong daily resistance and as such we may well see some profit taking here and some bears appear ahead of the weekend.

Usual caveat applies though as its Friday which means it can be a bit odd. UK GDP data that has just come out shows that the economy contracted last quarter in the first step towards an official recession.

Below the 7370 level then we have the daily pivot at the 7351 level, with the 30m 200ema and key fib at 7305 below that. Should it get there then a bounce here would make sense.

The 2h chart has support higher up though at 7340 having gone bullish again after yesterday!

Resistance wise 7465 is the main one, with 7510 above that where we have R2 and the 20d Raff channel top. I don't think we will push past that today and in fact may see the FTSE100 take a bit of a breather today.

Could be. slightly interesting day and need to see if that rally is built on sand or more solid foundations and fully expect a bit of a retrace.

Good luck today and have a great weekend.

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