Quote from Nick on 22nd July 2020, 10:27 am

FTSE 100 live outlook prediction analysis for 22nd July 2020

Here's a quick summary of Tuesday:

• Global stock markets rose on promising results from two clinical coronavirus vaccine trials, and after EU leaders finally clinched a landmark €750bn stimulus deal.
• The blue-chip index ended fairly flat, after shedding early gains.
• The Euro hit an 18-month high against the US dollar, and is poised to hit $1.15 for the first time since January 2019.
• The German Dax increased by 0.94pc, while the French Cac moved 0.23pc higher.
• In company news, shares in Ladbrokes owner GVC plunged after it said it is under investigation by the UK tax authorities over its former Turkish online gambling business.

Eurozone stocks finished higher on the back of the EU agreeing on the terms and conditions of the €750bn rescue package. The FTSE 100 closed 0.13pc up while the FTSE 250 pushed 0.67pc higher.

Antibodies Fade

Covid-19 antibodies in patients with mild symptoms fade quickly, raising concerns that their immunity from a future infection may not last very long, researchers said in the New England Journal of Medicine. European regulators are preparing for the possibility of approving a vaccine this year after a flurry of promising results, even as comments from the U.K.’s chief medical officer reflected uncertainty in the scientific community. These are the leading candidates to produce a shot to fight the pandemic. The Centers for Disease Control and Prevention found that far more people were infected than previously reported in several corners of the U.S., while U.S. President Donald Trump on Tuesday restarted his coronavirus briefings by warning about a surge in U.S. cases. [Bloomberg]

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

Stocks traded mixed on Wednesday amid uncertainty over the timing of a fresh U.S. stimulus program. The dollar extended losses, while gold soared above $1,850 an ounce. Shares climbed in China and Hong Kong, while those in Japan edged lower. Australian shares underperformed as the country recorded its worst day of virus cases. Futures on the S&P 500 ticked up after U.S. equities finished well off Tuesday’s session highs, with Senator Mitch McConnell casting doubt on reaching a fresh rescue bill before some current benefits expire. Tech stocks led the Nasdaq Composite lower. Silver climbed as precious metals jumped.

Gold continues to be the safe haven with a rise though 1850 now on its path towards the 1900 level. For the first time in a while it has broken above the Raff channels and may well be front running a downturn in indices. The S&P failed to push on yesterday much past the 3280 level but jobs data tomorrow may well be the catalyst for a move one way or the other. Resistance remains at 3303 to 3310 above that 3266 level that we broke through the other day.

For the FTSE today it has remained in the range of 6220 to 6320 for the moment. The 2 hour chart remains bearish, with resistance at the 6295 level for today, and it looks like the coral line may well change from green to red today if the bears keep it below this level. If that is the case then we should see a drop down to the 25ema on the daily at 6214, and possibly a bit lower, 6200ish maybe, to test the extremes of that range. Should the bears break below the 6200 level then we will more than likely be on for a slide down to 6130 which is the next daily support area, and a possible overshot of that to 6115 which is the bottom of the 10 day Raff channel.

If the bulls were to push past the 6310 level today then we remain on course for the 6400 area and of course the daily chart remains bullish for the moment, hence the trend is up, with the S&P consolidating possibly at the moment for another leg up. That would drag the FTSE up with it normally, so if we were to drop down to that 6214 daily support area, swing longs in this area are viable. I wouldn't be surprised if we continue the summer melt up and we are testing the top of the Raff channels again soon, with 6450 looking a likely target - just below the 20 day Raff there at the moment.

So, looking at that 6210ish area for support and the 6290 area for a resistance today - might be another lacklustre one ahead of the jobs data tomorrow. Good luck today.

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