Quote from Nick on 23rd April 2020, 9:46 am

FTSE 100 live outlook prediction analysis for 23rd April 2020

• Brent crude oil rebounds after sinking to lowest price since 1999. Oil prices rocketed higher after US President Donald Trump threatened to shoot at Iranian boats in a key waterway for crude shipments.
• FTSE edges higher after poor start to week
• UK inflation slowed slightly ahead of lockdown

Stocks in Europe clawed higher yesterday as the oil market gained ground. Prices for crude have been turned upside down due to how much extra oil is sloshing around following a collapse in demand. US oil jumped 23pc after Donald Trump threatened to destroy any Iranian gunboats that harass US Navy ships, raising the possibility of a disruption to oil supplies.

The FTSE 100 closed 2.30pc higher to 5,770.63 while the wider FTSE 250 rose 1.10pc to 15,568.23. In the eurozone, the German DAX climbed 1.6pc and the French CAC gained 1.25pc.

Easing lockdowns just got more difficult in Italy and France with both countries reporting the most new cases in four days.

Virus Update

New York Governor Andrew Cuomo reported 474 fatalities, the lowest daily rate since early April, pushing the total deaths for the state past 15,000. Italy and France both reported the most new cases in four days, complicating efforts to gradually ease containment measures. In Spain, where the daily case count was mostly steady, lawmakers extended a state of emergency to May 9. Singapore reported more than 1,000 new cases for the third day, pushing total infections past 10,000. Indonesia has extended a partial lockdown in Jakarta, while lockdowns in India are deepening economic distress there. Over in Israel, meanwhile, investors are proposing a build-it-yourself breathing machine. Around the world, the number of virus cases surpassed 2.6 million, with deaths topping 182,000.[Bloomberg]

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

The S&P has continued to climb off the daily support at 2740 and has nearly managed 2800. However we have a red 2 hour coral at 2811 that they will need to push past today. Above this its resistance at 2850 that will be next up, then the 2895 recent high. If it continues to climb then it should pull the FTSE up as well, and I am looking at a rise towards R1 at 5824 today. The 2 hour charts are fairly bullish across the board now, however the ASX200 had a fairly bearish session today and as such we may well see a bit of a slide if the bulls cannot push on above R1. Oil spiked higher on that news, and if that slides again today then it may well drag the FTSE down a bit too.

There are also a cluster of decent looking support levels at the 5730 area and as such if we get an early dip to this area then a long here may well yield a few points if the bulls step in. 2 hour support, as well as the daily pivot and the 200ema on the 30min are all clustered at this level making it look fairly key. If the bulls break this then a test of the fib level at 5691 is likely however.

Whilst the 2 hour charts are bullish, the FTSE daily is lagging the others - Dax and SPX daily chart moving averages are bullish, yet the FTSE remains bearish. There was also a ghost spike to 5300 last night on the charts which can be foretelling of a coming move (thanks to the members that spotted that one). All that said, the bulls will be keen to defend that 5730 2 hour support level initially today, and if they do then that would fit with the S&P putting in a bit more upside.

If the bulls push past the 5825 level then we may well remain on course for a test of the 10 day Raff channel top, which is up at 5980 currently, not today but maybe sometime soon we will see a test of that area if the bullishness continues. However the S&P has big resistance at the 2950 area and may recoil from there which would filter through to other indices.

So for the FTSE today I am looking at support at the 5730 area, with 5691 and then 5668 below that where we have S1. For the bulls, if they break above 5825 then I am looking at the 5850 recent high, then 5945 above that, which is the other recent high.

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