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Rise and dip today with 7340 7377 7430 resistance | 7275 7244 support

#1 · 26th July 2022, 10:44 am

Quote from Nick on 26th July 2022, 10:44 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 climbed Monday, supported by banks and commodity stocks in a choppy session, while data showed Britain's industrial output slowed but tentative signs of price pressures coming off their peak. The index added 0.4% to 7,306, reversing early losses.
Stocks in Asia received a fillip Tuesday from China’s technology sector, helping to alleviate some of the caution in global markets ahead of a hotly anticipated Federal Reserve interest-rate hike.
An Asian share index pushed higher, with Alibaba Group Holding Ltd. leading the advance in China tech. The e-commerce giant plans to seek a primary listing in Hong Kong, paving the way for investors in China to directly buy its shares.
U.S. equities were choppy on Monday with the Nasdaq leading declines ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike.
In currencies, the dollar index, which touched a 20-year high earlier this month, was down slightly and gold also slipped.
Janet Yellen, the U.S. Treasury Secretary, had said on Sunday that while U.S. economic growth was slowing, a recession was not inevitable.
The Fed concludes a two-day meeting on Wednesday. Traders have been dialling back expectations as markets try and figure out if or when policymakers might pause their inflation-fighting efforts because there are signs the economy is starting to slow.
Futures pricing points to a 75 basis point (bp) rate hike with a 10% risk of 100 bps.
A profit warning from Walmart on Monday, which said customers were tightening their belts, was the latest sign that the going is getting tough, coming on the heels of a handful of softer-than-expected U.S. and European data prints.
A 50 bp hike is also seen as the most likely move from the Bank of England next week, though it is barely lending support to sterling. The pound inched 0.1% higher on Tuesday to $1.2065.
FTSE100 live outlook prediction analysis for 26th July 2022
Bit of a bull Monday in the end yesterday so we may well be on track for a bear Tuesday today. Overnight we have tested the 7327 daily resistance level and seen a modest reaction there with a drop down to the pivot at at 7290. Initially today we may repeat that pattern but possibly dip down to the 200ema at 7270 before another climb up.
Upside resistance above the 7327 level remains at 7341 with R1 and the key fib here. Above that then 7377 is R2 and then the bigger level at 7428 with R3 here and lining up with the daily level. The Raff channels are heading up again, and in a further positive sign for the bulls, the daily EMAs have crossed over to a bullish set up. That has now locked in daily support at the 7240 level so keep an eye on this.
Talking of daily EMAs the S&P500 is also bullish but hasn't dropped back as yet to test its support which is at 3895 currently. Keep an eye on this level as if we do get a move down to here then we may well see a bounce here. It does align with S3 for today as well. We probably wont get that low today though (famous last words).
If the FTSE100 bears were to break below the 7270 level then 7244 key fib level is next up, and links with that 25ema on the daily. I would expect a bounce here. If not though and the bears power through then 7202 is the next level to look for, with the round number and S2 for today. Again, I dont think we will get that low, but the news flow is once again turning more pessimistic - Taiwan v China ramping up again, Russia, recession, winter of discontent, restricted gas supplies, etc etc. Plus the Fed tomorrow!
With all that rumbling on we will probably climb towards 7500 knowing what the markets are like! The 30m chart is certainly looking positive to start with and buying the dip in the very short term looks a decent set up.
Not too much more to say, summer trading and lots of trappy action so stay nimble and keep an eye on the key levels for the reactions.
Good luck today.
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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.
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FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

The FTSE 100 climbed Monday, supported by banks and commodity stocks in a choppy session, while data showed Britain's industrial output slowed but tentative signs of price pressures coming off their peak. The index added 0.4% to 7,306, reversing early losses.

Stocks in Asia received a fillip Tuesday from China’s technology sector, helping to alleviate some of the caution in global markets ahead of a hotly anticipated Federal Reserve interest-rate hike.

An Asian share index pushed higher, with Alibaba Group Holding Ltd. leading the advance in China tech. The e-commerce giant plans to seek a primary listing in Hong Kong, paving the way for investors in China to directly buy its shares.

U.S. equities were choppy on Monday with the Nasdaq leading declines ahead of a big week of technology earnings reports while oil prices rose and treasury yields edged higher as investors braced for a Federal Reserve interest rate hike.

In currencies, the dollar index, which touched a 20-year high earlier this month, was down slightly and gold also slipped.

Janet Yellen, the U.S. Treasury Secretary, had said on Sunday that while U.S. economic growth was slowing, a recession was not inevitable.

The Fed concludes a two-day meeting on Wednesday. Traders have been dialling back expectations as markets try and figure out if or when policymakers might pause their inflation-fighting efforts because there are signs the economy is starting to slow.

Futures pricing points to a 75 basis point (bp) rate hike with a 10% risk of 100 bps.

A profit warning from Walmart on Monday, which said customers were tightening their belts, was the latest sign that the going is getting tough, coming on the heels of a handful of softer-than-expected U.S. and European data prints.

A 50 bp hike is also seen as the most likely move from the Bank of England next week, though it is barely lending support to sterling. The pound inched 0.1% higher on Tuesday to $1.2065.

FTSE100 live outlook prediction analysis for 26th July 2022

Bit of a bull Monday in the end yesterday so we may well be on track for a bear Tuesday today. Overnight we have tested the 7327 daily resistance level and seen a modest reaction there with a drop down to the pivot at at 7290. Initially today we may repeat that pattern but possibly dip down to the 200ema at 7270 before another climb up.

Upside resistance above the 7327 level remains at 7341 with R1 and the key fib here. Above that then 7377 is R2 and then the bigger level at 7428 with R3 here and lining up with the daily level. The Raff channels are heading up again, and in a further positive sign for the bulls, the daily EMAs have crossed over to a bullish set up. That has now locked in daily support at the 7240 level so keep an eye on this.

Talking of daily EMAs the S&P500 is also bullish but hasn't dropped back as yet to test its support which is at 3895 currently. Keep an eye on this level as if we do get a move down to here then we may well see a bounce here. It does align with S3 for today as well. We probably wont get that low today though (famous last words).

If the FTSE100 bears were to break below the 7270 level then 7244 key fib level is next up, and links with that 25ema on the daily. I would expect a bounce here. If not though and the bears power through then 7202 is the next level to look for, with the round number and S2 for today. Again, I dont think we will get that low, but the news flow is once again turning more pessimistic - Taiwan v China ramping up again, Russia, recession, winter of discontent, restricted gas supplies, etc etc. Plus the Fed tomorrow!

With all that rumbling on we will probably climb towards 7500 knowing what the markets are like! The 30m chart is certainly looking positive to start with and buying the dip in the very short term looks a decent set up.

Not too much more to say, summer trading and lots of trappy action so stay nimble and keep an eye on the key levels for the reactions.

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