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 DiscussionNFP Friday with the bulls still i …

Please or Register to create posts and topics.

NFP Friday with the bulls still in control | 7837 7873 7906 resistance | 7805 7790 7757 support

#1 · 3rd February 2023, 9:57 am

Quote from Nick on 3rd February 2023, 9:57 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 3rd February 2023
A global stock rally ran into resistance in Asia on Friday as disappointing earnings from U.S. tech giants undermined sentiment, while the dollar regained some of its footing ahead of a key U.S. non-farm payrolls report.
On Thursday, the European Central bank (ECB) and Bank of England (BoE) hiked rates by 50 basis points each, with the BoE saying the tide was turning against inflation and the ECB indicating at least one more hike was on the horizon before re-evaluating its rate hike path.
Analysts expect 185,000 jobs were added last month, the lowest since January 2021, unemployment edged up to 3.6%, and hourly wage inflation to stay flat at 0.3% on a monthly basis, suggesting the strong labour market might have started to ease up.
The bears had a go off the 7835 resistance level yesterday, managing to just pop below the 7800 before the bulls fought back once again. As such that keeps alive the prospect of a rise towards the 7900 area and the all time high, though with NFP news out today at 1330 we may have a bit of a choppy one. The forecast is 185k jobs added, versus 223k previously, with the unemployment rates increasing to 3.6%. News is out at 1330 so expect the movement then!
Initially today the bulls will be looking to push it up and break above the 7835 level which then opens up a test of the 7875 area where we have a cluster of resistance levels, including a test of the top of the 10d Raff channel. As such, should it reach this level I would like to see a drop off from here, though it may only be a little one.
The bulls will certainly be keen to defend the 7800 level anyway for the moment. Above the 7875 level then R3 for today is at 7906 and we start getting into some really key long term resistance - the all time high being the main thing! As such the bulls will certainly need some strong momentum to continue pushing up. Despite the increase in interest rates and further squeezing of peoples expenditure the FTSE100 continues to rise. Mainly as its so miner/energy biased and as you saw yesterday with Shell's results that adds to the strength. Cable continuing to decline also helps the FTSE100 to rise as the main constituents of it earn in dollars.
For the bears, they will be looking to break that 7800 level as we have the daily pivot for initial support at 7805. Below that though the next support is at 7990 with the 30m 200ema here, and just below the 2h Hull MA. Lower down, 7760 area looks decent with the key fib here, and also splitting S1 at 7771 and S2 at 7738.
The ASX200 had a decent performance today, generally being quite bullish so it will be interesting to see if we follow suit.
As its NFP Friday it's worth being a bit more cautious today in terms of risk - lower stakes for example.
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

FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 3rd February 2023

A global stock rally ran into resistance in Asia on Friday as disappointing earnings from U.S. tech giants undermined sentiment, while the dollar regained some of its footing ahead of a key U.S. non-farm payrolls report.

On Thursday, the European Central bank (ECB) and Bank of England (BoE) hiked rates by 50 basis points each, with the BoE saying the tide was turning against inflation and the ECB indicating at least one more hike was on the horizon before re-evaluating its rate hike path.

Analysts expect 185,000 jobs were added last month, the lowest since January 2021, unemployment edged up to 3.6%, and hourly wage inflation to stay flat at 0.3% on a monthly basis, suggesting the strong labour market might have started to ease up.

The bears had a go off the 7835 resistance level yesterday, managing to just pop below the 7800 before the bulls fought back once again. As such that keeps alive the prospect of a rise towards the 7900 area and the all time high, though with NFP news out today at 1330 we may have a bit of a choppy one. The forecast is 185k jobs added, versus 223k previously, with the unemployment rates increasing to 3.6%. News is out at 1330 so expect the movement then!

Initially today the bulls will be looking to push it up and break above the 7835 level which then opens up a test of the 7875 area where we have a cluster of resistance levels, including a test of the top of the 10d Raff channel. As such, should it reach this level I would like to see a drop off from here, though it may only be a little one.

The bulls will certainly be keen to defend the 7800 level anyway for the moment. Above the 7875 level then R3 for today is at 7906 and we start getting into some really key long term resistance - the all time high being the main thing! As such the bulls will certainly need some strong momentum to continue pushing up. Despite the increase in interest rates and further squeezing of peoples expenditure the FTSE100 continues to rise. Mainly as its so miner/energy biased and as you saw yesterday with Shell's results that adds to the strength. Cable continuing to decline also helps the FTSE100 to rise as the main constituents of it earn in dollars.

For the bears, they will be looking to break that 7800 level as we have the daily pivot for initial support at 7805. Below that though the next support is at 7990 with the 30m 200ema here, and just below the 2h Hull MA. Lower down, 7760 area looks decent with the key fib here, and also splitting S1 at 7771 and S2 at 7738.

The ASX200 had a decent performance today, generally being quite bullish so it will be interesting to see if we follow suit.

As its NFP Friday it's worth being a bit more cautious today in terms of risk - lower stakes for example.

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