Quote from Nick on 1st December 2021, 10:30 am

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

The FTSE 100 clawed back much of its losses from earlier in the day yesterday as fears about the omicron variant began to recede. The blue-chip index dropped 1pc as markets opened this morning after Moderna’s chief executive warned current jabs wouldn’t protect against the new strain. Prime Minister Boris Johnson said another lockdown was unlikely in light of the new variant, but would keep everything under review.

But this was contradicted by BioNTech boss Ugur Sahin, who said that while the variant could lead to more infections among vaccinated people, they'll most likely be protected from serious illness. Oxford University and AstraZeneca have also played down fears that omicron will evade existing vaccines.

This helped drive a recovery in London’s blue-chip index, which pared losses to 0.7pc closing at 7,059.

Traders remain concerned over Jerome Powell's comment about ending tapering early alongside the potential restrictions to be implemented amid the spread of the omicron variant.

Most Asian stocks rose Wednesday along with U.S. equity futures as traders weighed positive regional economic data and the Federal Reserve’s signal of stepped up efforts to curb elevated inflation.

MSCI Inc.’s Asia-Pacific share index jumped the most since mid-October. South Korea led gains on strong export growth, while purchasing managers’ gauges pointed to resilient Asian manufacturing. S&P 500, Nasdaq 100 and European futures pushed higher, indicating stabilization after U.S. stocks slumped.

Ending Support
Federal Reserve Chair Jerome Powell said officials should weigh removing pandemic support at a faster pace and he retired the word “transitory” to describe stubbornly high inflation, though a new Covid-19 strain remains a risk. The comments before the Senate Banking Committee were taken as a hawkish pivot by financial markets with traders boosting bets on the pace of interest-rake hikes and ushering in volatility. U.S. stocks sank, the Treasury yield curve flattened, and the dollar and oil declined. Asia futures are pointing lower.

Vaccine Race
Drugmakers are rushing to test their shots and therapeutics against omicron amid signs it could spread more quickly and evade vaccine protection. AstraZeneca said it was testing its shot; Pfizer said it will know in the next few weeks how well its vaccine holds-up; while Moderna’s top executives reiterated that the variant’s many mutations suggest new vaccines will be needed. While countries around the world have been scrambling to impose border and travel curbs, it’s been business as usual in China, which has seen its closed-border Covid zero approach vindicatedby the spread of omicron. Meanwhile, the U.S. is considering tightening travel rules just as the holiday season approaches.

FTSE 100 live outlook prediction analysis for 1st December 2021

Volatility continues apace for the moment as we lurch from Omicron to tapering to inflation to war. However, the S&P bulls defended the 4560 level which was a key support, even though they couldn't break the key resistance at the 4670 level. Maybe another attempt today to push higher as a move above that 4670 keeps the bullish year end on the cards. The FTSE100 though has remained a bit stronger, holding well above the 7000 level and indeed, helped by some new month money and a positive Asian session, pushed above the 7100 level overnight.

I am thinking that we will get a dip and rise play out today as we have the divi later, albeit small at 4.53, but also the new month money flowing in. More info here on the dividend. There is decent support at the 7075 level where we have the daily pivot and the 30min coral now green. 7060 is also the 2h Hull MA support, after that has turned bullish with the climb from 6970 yesterday.

We are just testing the 2h coral resistance to start with at the 7120 area, and also the 200ema on the 30m here at 7141. As such an initial drop off this higher level down towards 7100 or just below would make sense. Also allows the market to stop out any early bulls that have jumped the start.... As well as a better price for the pro's to get in!

Below the 7066 level though and once again it gets bearish, with the key fib at 7007 next up, and then S1 at 6977.

The overnight long Dax trade worked well for those that did that in the live room - buying around 3pm and holding into this morning has netted a decent haul of points into this morning. Ask me for more info on this trade if needed.

For the FTSE100 bulls, if they can break above the 7140 level then we should see a rise towards the 7200 level which would backtest the previous support at 7202. We are also just above R1 at 7182 then as well. It will also bode well for some further strength this month to close out the year. Once more is understood about Omicron (and it does seem to be weaker but more contagious) then that will help set the tone as well. Expect that restrictions will last most of the winter as its flu season anyway!

So, looking at a dip and rise for today and watching that 7070 level for key support. Good luck today.

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