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Rise and dip ahead of the news this week | Bear Tuesday | 7175 7220 7283 resistance | 7120 7041 support

#1 · 12th July 2022, 10:16 am

Quote from Nick on 12th July 2022, 10:16 am
FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
Stocks and US equity futures fell Tuesday as the dollar and sovereign bonds rose, a pattern highlighting pervasive unease about the economic outlook amid high inflation and China’s struggles with Covid.
An Asian share index was dragged lower by the technology sector as well as weakness in Japan, Hong Kong and China. S&P 500, Nasdaq 100 and European contracts shed over 0.5% after a Wall Street slide Monday.
Asian shares fell on Tuesday, weighed down by the prospect of further monetary policy tightening by central banks, China’s renewed COVID outbreak and Europe’s energy shortage, which also left the euro a whisker from parity with the safe haven dollar.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8% to its lowest level in two years, while Japan’s Nikkei lost 1.75%. The euro fell as low as $1.0006 against the U.S. dollar, moving ever closer to parity for the first time since December 2002, as investors worry an energy crisis will tip the region into a recession.
Train passengers face disruption from the first national strike in 25 years after drivers at eight companies voted overwhelmingly for industrial action. Aslef, which represents drivers, said members at Chiltern, GWR, LNER, London Overground, Northern, Southeastern, TransPennine and West Midlands had all backed strikes on Monday.
Under Pressure
Markets in Asia are at risk of another bruising day. US stocks slumped, with traders positioning for a hot inflation reading and the start of a key earnings season that may provide clues on whether the economy is headed toward a recession. A selloff in megacaps like Tesla and Apple paced losses, while Twitter plunged 11% after Elon Musk’s aborted deal. US-listed Chinese stocks like Alibaba tumbled as authorities hit tech giants with regulatory fines and amid fresh Covid outbreaks.
Aides Dispatched
Senior US officials are spreading out across Asia following Secretary of State Antony Blinken’s brief trip to the region, in the next phase of a diplomatic charm offensive that comes after Chinese Foreign Minister Wang Yi carried out extensive travel there in recent weeks. During his trip, Blinken urged Wang to stop pledging neutrality in the Russia-Ukraine war. Among the senior officials, Vice President Kamala Harris plans to virtually address a gathering of Pacific Island leaders in Fiji on Tuesday, a move underscoring the increasing importance of Pacific nations to the US Indo-Pacific strategy.
FTSE 100 live outlook prediction analysis for 12th July 2022
That was a good rise from the 7095 support level yesterday and the bulls managed to add over 100 by the early evening to retest that 7213 level. Its dropped back again overnight, however it looks like we may well get a rise and dip today with a test of the 7220 level again in hours.
Initial resistance first though is at the 7175 level where we have the 30m 200ema and also the Hull MA 2h, so we could see a slight stutter here.
Above the 7220 level then the bulls would be looking to target the 7255 level and then R2 at 7283 above that. 7220 has held well as resistance for a while now, and as we get closer to earnings season, and then UK GDP and US inflation tomorrow, we may see a reluctance to hold too many positions ahead of them.
Meanwhile, for the bears, they will be looking to build on the overnight slide from the 7213, and target the key fib at the 7118 level, with the S1 level at 7108 below that. I would like to see this area hold today though if tested, otherwise yesterdays low at 7095, and then S2 at 7041 would be the next levels of note below.
The 10d Raff channel has once again started heading down, though the bulls have managed to keep the FTSE above the 7000 level successfully so far. There is still that daily support at 6999 in play, though S3 for today is slightly lower at 6987. Not expecting that low today (famous last words)!
S&P500
Again, looks like a rise and dip, if the bulls can defend the 3825 S2 level initially. That should then see a rise towards the 3857 level where we have the 30m coral and the 200ema as well, and should act as resistance. Below the 3825 level then 3804 S3 level is next up. Above 3855 then 3881 key fib level is the next level of note.
Good luck today, and don't forget the news looming tomorrow!
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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.
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FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

Stocks and US equity futures fell Tuesday as the dollar and sovereign bonds rose, a pattern highlighting pervasive unease about the economic outlook amid high inflation and China’s struggles with Covid.

An Asian share index was dragged lower by the technology sector as well as weakness in Japan, Hong Kong and China. S&P 500, Nasdaq 100 and European contracts shed over 0.5% after a Wall Street slide Monday.

Asian shares fell on Tuesday, weighed down by the prospect of further monetary policy tightening by central banks, China’s renewed COVID outbreak and Europe’s energy shortage, which also left the euro a whisker from parity with the safe haven dollar.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8% to its lowest level in two years, while Japan’s Nikkei lost 1.75%. The euro fell as low as $1.0006 against the U.S. dollar, moving ever closer to parity for the first time since December 2002, as investors worry an energy crisis will tip the region into a recession.

Train passengers face disruption from the first national strike in 25 years after drivers at eight companies voted overwhelmingly for industrial action. Aslef, which represents drivers, said members at Chiltern, GWR, LNER, London Overground, Northern, Southeastern, TransPennine and West Midlands had all backed strikes on Monday.

Under Pressure
Markets in Asia are at risk of another bruising day. US stocks slumped, with traders positioning for a hot inflation reading and the start of a key earnings season that may provide clues on whether the economy is headed toward a recession. A selloff in megacaps like Tesla and Apple paced losses, while Twitter plunged 11% after Elon Musk’s aborted deal. US-listed Chinese stocks like Alibaba tumbled as authorities hit tech giants with regulatory fines and amid fresh Covid outbreaks.

Aides Dispatched
Senior US officials are spreading out across Asia following Secretary of State Antony Blinken’s brief trip to the region, in the next phase of a diplomatic charm offensive that comes after Chinese Foreign Minister Wang Yi carried out extensive travel there in recent weeks. During his trip, Blinken urged Wang to stop pledging neutrality in the Russia-Ukraine war. Among the senior officials, Vice President Kamala Harris plans to virtually address a gathering of Pacific Island leaders in Fiji on Tuesday, a move underscoring the increasing importance of Pacific nations to the US Indo-Pacific strategy.

FTSE 100 live outlook prediction analysis for 12th July 2022

That was a good rise from the 7095 support level yesterday and the bulls managed to add over 100 by the early evening to retest that 7213 level. Its dropped back again overnight, however it looks like we may well get a rise and dip today with a test of the 7220 level again in hours.

Initial resistance first though is at the 7175 level where we have the 30m 200ema and also the Hull MA 2h, so we could see a slight stutter here.

Above the 7220 level then the bulls would be looking to target the 7255 level and then R2 at 7283 above that. 7220 has held well as resistance for a while now, and as we get closer to earnings season, and then UK GDP and US inflation tomorrow, we may see a reluctance to hold too many positions ahead of them.

Meanwhile, for the bears, they will be looking to build on the overnight slide from the 7213, and target the key fib at the 7118 level, with the S1 level at 7108 below that. I would like to see this area hold today though if tested, otherwise yesterdays low at 7095, and then S2 at 7041 would be the next levels of note below.

The 10d Raff channel has once again started heading down, though the bulls have managed to keep the FTSE above the 7000 level successfully so far. There is still that daily support at 6999 in play, though S3 for today is slightly lower at 6987. Not expecting that low today (famous last words)!

S&P500
Again, looks like a rise and dip, if the bulls can defend the 3825 S2 level initially. That should then see a rise towards the 3857 level where we have the 30m coral and the 200ema as well, and should act as resistance. Below the 3825 level then 3804 S3 level is next up. Above 3855 then 3881 key fib level is the next level of note.

Good luck today, and don't forget the news looming tomorrow!

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