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Possible dip and rise today | 6730 6697 support | 6770 6781 6810 resistance

#1 · 19th January 2021, 10:12 am

Quote from Nick on 19th January 2021, 10:12 am
FTSE 100 live outlook prediction analysis for 19th January 2021
A quiet day for markets yesterday, with the FTSE 100 slightly underperforming a flat Europe, and the US markets closed for Martin Luther King day. Couple of trades triggered and both netted a few points, Dax and Gold, so not all bad! Overnight has seen a bit of a bullish kick up with the S&P rising from the 3760 low yesterday and the FTSE getting near to the 6770 again. 2 hour charts have flipped bullish again so we may well see a bit of a climb today.

China
China was the only major economy to survive 2020 without shrinking but concerns are growing about a potential second wave of Covid infections. The world’s second-largest economy expanded 2.3pc last year as it ended 2020 on the front foot, new figures from Beijing revealed. The rise in GDP bucked the trend across the world but was still China's worst annual performance in decades. Growth in the fourth quarter beat expectations to hit 6.5pc year on year, powered by a 7.3pc rise in industrial production.
China is expected to be the only large economy to grow in 2020 after brushing aside a collapse in global demand and strict lockdowns to curb Covid cases. By comparison, Germany's economy contracted 5pc last year while forecasters expect the UK to suffer a 10.9pc drop in GDP and the US a 3.5pc fall. However, analysts are warning that a “rocky” road lies ahead for the Chinese economy as infections begin to pick up again. The country is experiencing its worst spurt in cases since the first wave with Beijing, putting almost 30m people under new lockdowns after an outbreak in the province of Hebei.
Markets Lift
Asian equities looked set for modest gains Tuesday as investors awaited President Donald Trump’s last full day in office and mulled stimulus plans from President-elect Joe Biden. The dollar pared an earlier advance. Futures pointed higher in Japan, Hong Kong and Australia. S&P 500 contracts fluctuated with U.S. markets closed for the Martin Luther King holiday Monday. Treasury futures were little changed. Investors will watch out for comments from Treasury Secretary nominee Janet Yellen, who has a Senate confirmation hearing Tuesday. Elsewhere, oil edged lower, gold climbed and Bitcoin fluctuated around the $36,000 level.[Bloomberg]
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US & Asia Overnight from Bloomberg
Most Asian equities rose with U.S. stock futures Tuesday and bond yields ticked up as investors awaited comments from Treasury Secretary nominee Janet Yellen on stimulus and the dollar. The greenback retreated.
An Asia-Pacific share gauge gained the most in more than a week. South Korean and Hong Kong stocks outperformed. S&P 500 and European contracts advanced and 10-year Treasury yields climbed to about 1.11%. The yen dipped, while most G-10 currencies rose. U.S. markets were shut for a holiday Monday.
Yellen’s Senate confirmation hearing will likely touch on currency policy but will also serve as the first congressional forum for lawmakers to vet President-elect Joe Biden’s $1.9 trillion Covid-19 relief plan. Yellen will tell them low borrowing costs mean it’s time to “act big,” according to prepared remarks. Traders will also monitor Donald Trump’s last full day in office.
Elsewhere, oil and gold fluctuated and Bitcoin traded around the $36,500 level.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Decent kick up overnight to start with today and that has made the 2 hour chart bullish, with decent looking support at 6726. That also tallies with support from the 30m coral (now green) at 6726 and the daily pivot at 6730. As such if we get an initial drop down to there we may well see the bulls reappear here. The S&P needed to defend the 3750 level yesterday if we are to get another leg up and it has done so - just need the bulls to break the 3800 level now as we have the red 2 hour coral here.
If the bears were to break below 6730 though then we will likely see a slide down to 6700 again, and a break of the 6690 level remains the main bearish signal - and tees up a slide down towards the 6605 level where we have the bottom of the 20d Raff channel for today. 6582 is also the daily coral and hasn't been tested since turning green so I am still keeping an eye on that line. Its steadily rising each day but I am not expecting us to get that low today.
For the bulls they will be looking to break above the 6770 level as that has been the overnight high, but we have the key fib just above this at 6781, and also R3 at 6787. After the flat day yesterday the range between S3 and R3 is quite narrow so we are already looking to start the day above R1 and just below R2.
The 30min chart is bullish to start with today, and we have seen the first test of the ema at 6740 hold (that was also yesterday's first resistance level and we got a modest move down from there). As such we may well see an initial kick up towards the 6770 again as we open, if 6740 holds still. A dip and rise would play out well today as it does still look like there is one last push up on the cards.
Watching the S&P to see if it can break that 3800 resistance level today which should drag the FTSE up towards the 6780ish area.
Good luck today.
Recommended Broker

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Membership and Live Trading
If you would like more detailed analysis for FTSE 100, 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 FTSE, DAX, Gold and S&P.
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FTSE 100 live outlook prediction analysis for 19th January 2021

A quiet day for markets yesterday, with the FTSE 100 slightly underperforming a flat Europe, and the US markets closed for Martin Luther King day. Couple of trades triggered and both netted a few points, Dax and Gold, so not all bad! Overnight has seen a bit of a bullish kick up with the S&P rising from the 3760 low yesterday and the FTSE getting near to the 6770 again. 2 hour charts have flipped bullish again so we may well see a bit of a climb today.

China

China was the only major economy to survive 2020 without shrinking but concerns are growing about a potential second wave of Covid infections. The world’s second-largest economy expanded 2.3pc last year as it ended 2020 on the front foot, new figures from Beijing revealed. The rise in GDP bucked the trend across the world but was still China's worst annual performance in decades. Growth in the fourth quarter beat expectations to hit 6.5pc year on year, powered by a 7.3pc rise in industrial production.

China is expected to be the only large economy to grow in 2020 after brushing aside a collapse in global demand and strict lockdowns to curb Covid cases. By comparison, Germany's economy contracted 5pc last year while forecasters expect the UK to suffer a 10.9pc drop in GDP and the US a 3.5pc fall. However, analysts are warning that a “rocky” road lies ahead for the Chinese economy as infections begin to pick up again. The country is experiencing its worst spurt in cases since the first wave with Beijing, putting almost 30m people under new lockdowns after an outbreak in the province of Hebei.

Markets Lift

Asian equities looked set for modest gains Tuesday as investors awaited President Donald Trump’s last full day in office and mulled stimulus plans from President-elect Joe Biden. The dollar pared an earlier advance. Futures pointed higher in Japan, Hong Kong and Australia. S&P 500 contracts fluctuated with U.S. markets closed for the Martin Luther King holiday Monday. Treasury futures were little changed. Investors will watch out for comments from Treasury Secretary nominee Janet Yellen, who has a Senate confirmation hearing Tuesday. Elsewhere, oil edged lower, gold climbed and Bitcoin fluctuated around the $36,000 level.[Bloomberg]

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US & Asia Overnight from Bloomberg

Most Asian equities rose with U.S. stock futures Tuesday and bond yields ticked up as investors awaited comments from Treasury Secretary nominee Janet Yellen on stimulus and the dollar. The greenback retreated.

An Asia-Pacific share gauge gained the most in more than a week. South Korean and Hong Kong stocks outperformed. S&P 500 and European contracts advanced and 10-year Treasury yields climbed to about 1.11%. The yen dipped, while most G-10 currencies rose. U.S. markets were shut for a holiday Monday.

Yellen’s Senate confirmation hearing will likely touch on currency policy but will also serve as the first congressional forum for lawmakers to vet President-elect Joe Biden’s $1.9 trillion Covid-19 relief plan. Yellen will tell them low borrowing costs mean it’s time to “act big,” according to prepared remarks. Traders will also monitor Donald Trump’s last full day in office.

Elsewhere, oil and gold fluctuated and Bitcoin traded around the $36,500 level.

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

Decent kick up overnight to start with today and that has made the 2 hour chart bullish, with decent looking support at 6726. That also tallies with support from the 30m coral (now green) at 6726 and the daily pivot at 6730. As such if we get an initial drop down to there we may well see the bulls reappear here. The S&P needed to defend the 3750 level yesterday if we are to get another leg up and it has done so - just need the bulls to break the 3800 level now as we have the red 2 hour coral here.

If the bears were to break below 6730 though then we will likely see a slide down to 6700 again, and a break of the 6690 level remains the main bearish signal - and tees up a slide down towards the 6605 level where we have the bottom of the 20d Raff channel for today. 6582 is also the daily coral and hasn't been tested since turning green so I am still keeping an eye on that line. Its steadily rising each day but I am not expecting us to get that low today.

For the bulls they will be looking to break above the 6770 level as that has been the overnight high, but we have the key fib just above this at 6781, and also R3 at 6787. After the flat day yesterday the range between S3 and R3 is quite narrow so we are already looking to start the day above R1 and just below R2.

The 30min chart is bullish to start with today, and we have seen the first test of the ema at 6740 hold (that was also yesterday's first resistance level and we got a modest move down from there). As such we may well see an initial kick up towards the 6770 again as we open, if 6740 holds still. A dip and rise would play out well today as it does still look like there is one last push up on the cards.

Watching the S&P to see if it can break that 3800 resistance level today which should drag the FTSE up towards the 6780ish area.

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 FTSE 100, 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 FTSE, DAX, Gold and S&P.
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

Keep up to date with new content, free sign up below

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