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New month money and positive China manufacturing | rise and dip with 7920 7984 resistance | 7888 7830 support

#1 · 1st March 2023, 10:08 am

Quote from Nick on 1st March 2023, 10:08 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 28th February 2023
Check out IG for trading https://refer.ig.com/iA6I8q
Asian stocks bounced off a two-month low and headed for their best day in seven weeks on Wednesday, as data showing China's manufacturing activity expanded at the fastest pace in over a decade injected a jolt of optimism in hitherto gloomy markets.
China's official manufacturing purchasing managers' index (PMI) stood at 52.6 last month against 50.1 in January and was well ahead of an analyst forecast for 50.5, giving investors hope that China's recovery can offset a global slowdown.
Start of another new month and we have already seen a bit of an overnight push up, helped (handy timing) by the positive news out of China that manufacturing there had its biggest improvement in more than a decade. Those that did the Dax40 long at around 3pm and 9pm yesterday have benefitted well from that!
Initially today we may well see a bit more upside play out, and a rise to test the 7985 resistance level that actually looks quite strong for today. We have the daily level here but also the R2 and top of the 10d Raff channel. As such, I would expect the bears to have a go here, as well as some profit taking. Also stops just shy of the inevitable short orders at 8000 once again!
It seems to have been consolidating quite well recently ready for another push higher, possibly this month, but will need to break that 7985 first. If it were to do that today though then 8010 is R3, then the latest high at 8050 above that. I do think that the 7985 level will be a bit decent resistance today though.
For the bears then they will be looking to break below the daily pivot level of 7888 to start with as that would open up a potential slide down to the 7830 key fib and S1 level. The bulls managed to defend the 7853 level again yesterday, and we still have daily support at 7851 which hasn't quite been tested exactly yet.
Below 7830 then 7800 would be the next level of note, and 7792 is also S2 for today. The bears will start getting stronger if we start seeing these levels though, and the 8050 level fades into the distance!
The S&P500 is also pushing back up off the 3950 level seen overnight and the bulls will of course be looking to break 4000 again. 3999 is the key fib resistance however so we may well see any rise stall here.
Likewise with the Dax40 - 15450 is the key fib and again I would expect a reaction at this level as the overnight longs close around this level. The 2h Dax40 chart is just going bullish and has support at the 15365 level possibly about to lock in this morning, so keep an eye on that too.
Good luck today.
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FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 28th February 2023

Check out IG for trading https://refer.ig.com/iA6I8q

Asian stocks bounced off a two-month low and headed for their best day in seven weeks on Wednesday, as data showing China's manufacturing activity expanded at the fastest pace in over a decade injected a jolt of optimism in hitherto gloomy markets.

China's official manufacturing purchasing managers' index (PMI) stood at 52.6 last month against 50.1 in January and was well ahead of an analyst forecast for 50.5, giving investors hope that China's recovery can offset a global slowdown.

Start of another new month and we have already seen a bit of an overnight push up, helped (handy timing) by the positive news out of China that manufacturing there had its biggest improvement in more than a decade. Those that did the Dax40 long at around 3pm and 9pm yesterday have benefitted well from that!

Initially today we may well see a bit more upside play out, and a rise to test the 7985 resistance level that actually looks quite strong for today. We have the daily level here but also the R2 and top of the 10d Raff channel. As such, I would expect the bears to have a go here, as well as some profit taking. Also stops just shy of the inevitable short orders at 8000 once again!

It seems to have been consolidating quite well recently ready for another push higher, possibly this month, but will need to break that 7985 first. If it were to do that today though then 8010 is R3, then the latest high at 8050 above that. I do think that the 7985 level will be a bit decent resistance today though.

For the bears then they will be looking to break below the daily pivot level of 7888 to start with as that would open up a potential slide down to the 7830 key fib and S1 level. The bulls managed to defend the 7853 level again yesterday, and we still have daily support at 7851 which hasn't quite been tested exactly yet.

Below 7830 then 7800 would be the next level of note, and 7792 is also S2 for today. The bears will start getting stronger if we start seeing these levels though, and the 8050 level fades into the distance!

The S&P500 is also pushing back up off the 3950 level seen overnight and the bulls will of course be looking to break 4000 again. 3999 is the key fib resistance however so we may well see any rise stall here.

Likewise with the Dax40 - 15450 is the key fib and again I would expect a reaction at this level as the overnight longs close around this level. The 2h Dax40 chart is just going bullish and has support at the 15365 level possibly about to lock in this morning, so keep an eye on that too.

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 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