Quote from Nick on 7th September 2021, 10:15 am

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

The FTSE 100 ended the day higher, mirroring gains in other European markets including in France, where the main index ended up 0.8pc and in Germany, where the Dax rose 1pc. Trading volumes were muted throughout the day due to a public holiday in the United States for Labor Day.

FTSE 100 live outlook prediction analysis for 7th September 2021

Fairly flat day as expected yesterday but we got the rise to the 7192 resistance level and then stalled there for most of the rest of the session. Having come off a bit overnight to test the 7160 level, we could well see a further dip and then a rise play out today, with a break of the 7160 200ema support level leading to a test of the 7123 area. This area should be decent support as we also have the bottom of the 10 day Raff channel here and just above daily support at 7111.

The S&P also looks like it wants some more upside and if the bulls can break 4545 (30m coral resistance here) then a push up towards the 4566 R3 level should play out. Maybe higher though! On the flip side the bears will be looking to break the 30m 200ema at 4534 as that will likely lead down to S2 at 4425 and a level that the bulls will be keen to hold. 4547 is the 2h resistance level from the Hull moving average though so keep an eye on this as the bulls will want to push past this today having returned from their long weekend.

For the FTSE100, the bears will want to break that 7110 level as that will lead to 7094 S2 but a break of that will likely see 7065 where we have S3. I would like to see the bottom of the 10 day Raff channel hold today though at 7110 as that keeps alive the play for a continuation of a climb into mid September and possibly that 7250 area.

7226 is the top of the 10 day Raff channel and if the bulls push on today then we may well see a rise to this today to counter a bear Tuesday (delayed as US closed yesterday). 7219 is also the key fib for today and just below the recent high at the 7225 level - the bulls will certainly be keen to push past this level though.

While the FTSE100 and Dax30 (or soon to be Dax40!) 2hr charts are bullish, the S&P500 has gone bearish with resistance at 4547 so keep an eye on this. Dax 2h support is at 15850, along with a green coral at 15831, while the FTSE100 2hr support has been tested overnight at the 7160 level.

So thinking that we may well see an initial drop down towards 7140 S1 but possibly as low as 7110/7120 area and then a bounce back up to the 7180 or higher level.

Good luck today.

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Asian Session

Most Asian stocks rose Tuesday as Japan extended a rally and traders took heart from indications that the global recovery is weathering challenges from the delta virus variant.

Japan’s Nikkei 225 hit 30,000 for the first time since April as an index reshuffle added to optimism that a new prime minister will usher in favorable policies. China climbed, aided by a continuing rebound in technology stocks and better than expected trade data. S&P 500 and Nasdaq 100 futures edged up ahead of a resumption in U.S. markets after a holiday.

Treasury yields pushed higher and dollar dipped. New Zealand’s 10-year yield rose to the highest since April 2019. Oil retreated amid Saudi Arabia’s price cut for Asian buyers and demand threats from the outbreak of the delta variant. Bitcoin topped $52,000. El Salvador bought 400 coins ahead of adopting the cryptocurrency as legal tender on Tuesday.

Australia’s dollar and 10-year bond yields rose after the central bank said it will stick to its plan to taper bond purchases as the economic impact from restrictions to tame the virus will be temporary.

Global shares are at a record, overcoming concerns that the delta strain is hampering economic reopening and exacerbating supply snarls that are fueling inflation. A weak U.S. jobs report has bolstered the view that the Federal Reserve will delay paring the stimulus that has helped financial markets. [Bloomberg]

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