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Reddit driven pump ends | Earnings continue | 6581 6600 resistance | 6515 6500 6445 support

#1 · 3rd February 2021, 10:01 am

Quote from Nick on 3rd February 2021, 10:01 am
FTSE 100 live outlook prediction analysis for 3rd February 2021
The Reddit-led market revolt fell apart on Tuesday as shares plunged at GameStop and Odeon owner AMC Entertainment, saddling hordes of enthusiastic day traders with massive losses. Shares in the two key “memestocks” at the centre of last week’s market ruckus dropped 63pc and 50pc respectively in afternoon trading in New York, while fellow favourite BlackBerry plunged almost a quarter.

Silver prices also fell almost 10pc, following a surge on Monday partly driven by some users of social network Redidt.
The drops compounded a tough session on Monday for the stocks, with Redditors gathering in the site's WallStreetBets forum to tell of heavy losses and implore one another not to sell their shares.
New Amazon CEO
Amazon Chief Executive Officer Jeff Bezos will step down from his post in the third quarter of 2021 and be replaced by Andy Jassy, the head of the company’s cloud computing unit. Jassy for years has been seen as a potential successor to Bezos, who founded the company as an online bookstore from his Seattle garage more than 25 years ago and became one of the world’s wealthiest men. Bezos will become executive chairman, Amazon said in a statement.
Rally to Rout
The wild run-up of trades popular with Reddit crowds is starting to come crashing down, with meme stocks losing $167 billion in just a matter of days. GameStop sank 47% and is now down 65% from its record close on Wednesday. AMC slid 39% and Express Inc. lost 26%. Silver tumbled more than 5% after surging to an eight-year high as the speculative retail frenzy ensnared metals and captivated global markets. The retreats coincide with a sharp reduction in short interest after bearish investors appeared to cover their positions. While a few funds were hit with double-digit losses, including Melvin’s 53% drubbing, January performance numbers show that most funds navigated the Reddit-fueled trading frenzy with only a few bruises.
Market Rally
Asian stocks looked set to extend a global rally amid a slew of corporate earnings and a crumbling of the retail trading frenzy that fueled swings in heavily shorted shares. The dollar slipped. Futures in Japan and Australia pointed higher, though dipped in Hong Kong. U.S. stocks climbed for a second session. Treasury yields edged higher amid a move to fast track a U.S. stimulus plan. Oil climbed to its highest in over a year on tightening global supplies and signs of strength in physical markets.[Bloomberg]
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US & Asia Overnight from Bloomberg
Most Asian stocks rose Wednesday, extending a global rally amid a slew of corporate earnings and a crumbling of the retail trading frenzy that fueled swings in heavily shorted shares. The dollar retreated.
Shares outperformed in Australia and Japan, though dipped in Hong Kong. S&P 500 and Nasdaq 100 futures climbed after Alphabet Inc. and Amazon.com Inc. reported better-than-estimated revenue, with the online-retail giant saying Chief Executive Officer Jeff Bezos will step down from his post. U.S. stocks earlier closed higher for a second session. Treasury yields edged up amid a move to fast track a U.S. stimulus plan.
Elsewhere, oil traded at its highest in over a year on tightening global supplies and signs of strength in physical markets. The People’s Bank of China earlier drained some funds from the financial system.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
The 6480 FTSE 100 support held well yesterday as the bears failed to take it down to the 6440 level, and as such the bulls are still in the driving seat for the moment. We are getting closer to the daily moving average resistance at 6600 now from the moving average since it went bearish on the 28th January. With the strength this week the 2 hour is bullish though, with support at 6440 so the bears would need to get the price below that to resume the slide.
Initially today it looks like we will get a kick up towards the R1 level at 6564, and we also have the key fib just above this at 6581 so we may well see a bit of a bearish reaction in this area. As I write this we are just testing the cam break out level of 6548 together with the top of the 10 day Raff channel, so we may get a bit of initial, chop around here.
Above the 6581 level then 6600 as mentioned, with 6615 as another daily resistance level to keep an eye on. It would be worth a short here too. Should the bulls manage to break above 6615 then we may well be back on track for a rise towards the 6636 R3 level, and possibly as high as the daily coral at the 6700 level. Not expecting to get that high today though.
The S&P bulls are certainly pushing on at the moment with moves above the 10 day Raff the past 2 days. Dax, Ftse and S&P are all testing the top of the 10 day Raff channels for today as well. So whilst it's bullish, I am also cautious!
For support on the FTSE 100, initially the daily pivot and the 200ema 30m at the 6515 level look decent to start with. Below that then S1 and the key fib at the slightly lower 6500 level would be good to hold, if the bullishness is going to continue. Otherwise that 2 hour support level at 6440 is likely to be tested. Again, should it get that low then a long here is worth a go.
Good luck today. Cautiously bullish but expect that we may well see a pullback soon, unless the bulls manage to break the 6600 level convincingly.
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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 3rd February 2021

The Reddit-led market revolt fell apart on Tuesday as shares plunged at GameStop and Odeon owner AMC Entertainment, saddling hordes of enthusiastic day traders with massive losses. Shares in the two key “memestocks” at the centre of last week’s market ruckus dropped 63pc and 50pc respectively in afternoon trading in New York, while fellow favourite BlackBerry plunged almost a quarter.

Silver prices also fell almost 10pc, following a surge on Monday partly driven by some users of social network Redidt.

The drops compounded a tough session on Monday for the stocks, with Redditors gathering in the site's WallStreetBets forum to tell of heavy losses and implore one another not to sell their shares.

New Amazon CEO

Amazon Chief Executive Officer Jeff Bezos will step down from his post in the third quarter of 2021 and be replaced by Andy Jassy, the head of the company’s cloud computing unit. Jassy for years has been seen as a potential successor to Bezos, who founded the company as an online bookstore from his Seattle garage more than 25 years ago and became one of the world’s wealthiest men. Bezos will become executive chairman, Amazon said in a statement.

Rally to Rout

The wild run-up of trades popular with Reddit crowds is starting to come crashing down, with meme stocks losing $167 billion in just a matter of days. GameStop sank 47% and is now down 65% from its record close on Wednesday. AMC slid 39% and Express Inc. lost 26%. Silver tumbled more than 5% after surging to an eight-year high as the speculative retail frenzy ensnared metals and captivated global markets. The retreats coincide with a sharp reduction in short interest after bearish investors appeared to cover their positions. While a few funds were hit with double-digit losses, including Melvin’s 53% drubbing, January performance numbers show that most funds navigated the Reddit-fueled trading frenzy with only a few bruises.

Market Rally

Asian stocks looked set to extend a global rally amid a slew of corporate earnings and a crumbling of the retail trading frenzy that fueled swings in heavily shorted shares. The dollar slipped. Futures in Japan and Australia pointed higher, though dipped in Hong Kong. U.S. stocks climbed for a second session. Treasury yields edged higher amid a move to fast track a U.S. stimulus plan. Oil climbed to its highest in over a year on tightening global supplies and signs of strength in physical markets.[Bloomberg]

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US & Asia Overnight from Bloomberg

Most Asian stocks rose Wednesday, extending a global rally amid a slew of corporate earnings and a crumbling of the retail trading frenzy that fueled swings in heavily shorted shares. The dollar retreated.

Shares outperformed in Australia and Japan, though dipped in Hong Kong. S&P 500 and Nasdaq 100 futures climbed after Alphabet Inc. and Amazon.com Inc. reported better-than-estimated revenue, with the online-retail giant saying Chief Executive Officer Jeff Bezos will step down from his post. U.S. stocks earlier closed higher for a second session. Treasury yields edged up amid a move to fast track a U.S. stimulus plan.

Elsewhere, oil traded at its highest in over a year on tightening global supplies and signs of strength in physical markets. The People’s Bank of China earlier drained some funds from the financial system.

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

The 6480 FTSE 100 support held well yesterday as the bears failed to take it down to the 6440 level, and as such the bulls are still in the driving seat for the moment. We are getting closer to the daily moving average resistance at 6600 now from the moving average since it went bearish on the 28th January. With the strength this week the 2 hour is bullish though, with support at 6440 so the bears would need to get the price below that to resume the slide.

Initially today it looks like we will get a kick up towards the R1 level at 6564, and we also have the key fib just above this at 6581 so we may well see a bit of a bearish reaction in this area. As I write this we are just testing the cam break out level of 6548 together with the top of the 10 day Raff channel, so we may get a bit of initial, chop around here.

Above the 6581 level then 6600 as mentioned, with 6615 as another daily resistance level to keep an eye on. It would be worth a short here too. Should the bulls manage to break above 6615 then we may well be back on track for a rise towards the 6636 R3 level, and possibly as high as the daily coral at the 6700 level. Not expecting to get that high today though.

The S&P bulls are certainly pushing on at the moment with moves above the 10 day Raff the past 2 days. Dax, Ftse and S&P are all testing the top of the 10 day Raff channels for today as well. So whilst it's bullish, I am also cautious!

For support on the FTSE 100, initially the daily pivot and the 200ema 30m at the 6515 level look decent to start with. Below that then S1 and the key fib at the slightly lower 6500 level would be good to hold, if the bullishness is going to continue. Otherwise that 2 hour support level at 6440 is likely to be tested. Again, should it get that low then a long here is worth a go.

Good luck today. Cautiously bullish but expect that we may well see a pullback soon, unless the bulls manage to break the 6600 level convincingly.

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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