Quote from Nick on 19th December 2022, 9:54 am

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

FTSE100 live outlook prediction analysis for 19th December 2022

Concern that further rate hikes from the Federal Reserve will trigger a recession reduced the appetite for riskier assets, sending equities lower in Asia after a second week of declines on Wall Street. An Asian equity benchmark headed down for the third day, the longest losing streak in almost two months. US stock futures erased earlier gains, falling in line with the S&P 500 and the tech-heavy Nasdaq 100, which closed lower on Friday.

Friday saw a very bearish day across the board as jitters retuned and stopped Santa in his tracks. Will he try to muster a bit of a rally this week for a Santa Rally? That said the FTSE100 has held on well with the 7300 area remaining as decent support. There are a cluster of supports just below this too and as long at 7290 holds then it bodes well for a bit of a push higher. The media are getting pretty negative again which is usually as good sign for a bit of a climb on the markets.

Initially we have support at the 7350 level with the key fib here, and then just below this the 30m coral at 7330. Fridays low at 7304 is then just above the cluster of supports as mentioned at the 7290 level. The ASX had a fairly flat day, with a rise dip rise playing out and we may well do something similar today.

I would like to see the 7350 level hold initially anyway to at least get a bit of a bull Monday to start with. How long it lasts though......

If it does then a rise towards the 7410 level looks like it may well play out and we have the first stumbling block for the bulls here, with the key fib and the 30m 200ema here. If they manage to break this then the R1 level 7433 is next up. The bears won't be happy about a push past the 7400 level though so I am expecting them to put up a bit of a fight on any rises.

Above 7410 then 7440 is the 2h coral and would be the next level to look out for, though that does feel like it might be a bit of a big ask today.

Looking at the daily chart the 7274 is now the daily green coral line and if it gets bearish today then we could see a test of that. That also aligns with the bottom of the 10d Raff channel so a long here is worth a go (an overshoot of the 7290 key support maybe?) and could well be the level that tees up a bit of a bounce this week.

S&P500
Also has a bearish 2h chart and a rise to test the resistance levels at 3915 and then 3960 would fit well. Its climbed a bit from Friday's low at 3825 and the bulls will be keen to pull away from the 3855 daily pivot level, at least initially. 3890 is resistance and the bulls will be keen to break this, though the bears will likely use the level for another leg down. The daily chart has got a bearish cross on the EMAs as well for the first time in a while and 3941 resistance is showing on that. The bulls have their work cut out thats for sure!

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