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Slow drift up towards 7076 resistance | 7116 above | 7000 6950 support

#1 · 24th May 2021, 10:44 am

Quote from Nick on 24th May 2021, 10:44 am
FTSE 100 live outlook prediction analysis for 24th May 2021
The FTSE 100 traded flat for most of the day on Friday, despite new data showing the UK economy is enjoying an 'unprecedented growth spurt' as it emerges from lockdown. Having dipped below the 7,000 mark in the morning, London's main index was down 1.75pc to close at 7,018.05 in a choppy week where the index hit a one week high and a six-day low in the space of only 24 hours.

The pound rose to $1.42 at one point on Friday, as the Office for National Statistics said retail sales surged 9.2pc in April - double the rate economists expected. Eventually it closed up 0.02pc versus the US dollar, $1.418 and was up 0.03pc against the euro at €1.162.
Bitcoin clawed its way back to $40,000 after this week's cryptocurrency clash sparked by regulation fears in China. The coin managed to hold the $40,000 level for most of London trading until late afternoon China's Vice Premier Liu He reiterated the government's intention to crackdown on Bitcoin mining and trading, sending the currency skidding to $36,756.24, down 8pc just after London closed.
Wild Ride
Bitcoin’s extreme volatility continued to whipsaw investors with double-digit percentage moves. Bitcoin traded down as much as 18% at one point Sunday. Other cryptocurrencies, including Ethereum and Dogecoin, also slumped. Earlier in the weekend, Bitcoin had climbed more than 8% following a tweet from Elon Musk that he would back crypto in the battle against fiat currencies. Meanwhile, former U.S. Treasury Secretary Lawrence Summers said cryptocurrencies could stay a feature of global markets as something akin to “digital gold,” even if their importance in economies will remain limited.
Mixed Markets
Stocks in Asia are set to start the week mixed amid volatile trading in high-risk assets such as Bitcoin and ongoing concerns about the outlook for inflation. Currencies were steady in early trading. On Friday, the S&P 500 closed little changed after erasing earlier gains, while the tech-heavy Nasdaq 100 finished lower. Futures edged higher in Japan and were modestly lower in Australia and Hong Kong. U.S. futures opened little changed and oil edged higher.[Bloomberg]
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US & Asia Overnight from Bloomberg
U.S. equity futures fluctuated and Asian stocks were steady Monday as traders weighed the volatile slump in cryptocurrencies, the inflation outlook and China’s intensifying effort to cool raw-materials prices.
Shares posted modest gains in Japan and Australia but retreated in Hong Kong. S&P 500, Nasdaq 100 and European equity contracts oscillated after U.S. stocks closed mixed on Friday. Bitcoin advanced to about $35,100 following another weekend of big swings.
The stalling commodities boom remains in focus as China tries to temper speculation, with the nation vowing severe punishment for violations ranging from excessive speculation to spreading fake news.
Market-based gauges of inflation expectations have declined of late, but concerns linger that the post-pandemic recovery could stoke price pressures and force a pullback in extraordinary central bank support. Treasury yields and the dollar were steady.
Global equities have lost some steam and speculative ardor for riskier investments like Bitcoin has declined after a prolonged rally from pandemic lows. While the economic recovery from the health crisis offers background support for sentiment, investors are wary that policy makers may eventually have to curb stimulus. Some countries also still face Covid-19 spikes.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Good fight back on Friday from the bulls again, defending the 6970 level and the price has remained above 7000 since. That should bode well for a rise towards the 7075 resistance level and we have a bullish 2 hour chart for the moment as well. Support from both the Hull and coral is at 7000 so it would be good to see any dip to there defended to set up a bull Monday.
Should the bears break below 7000 then 6950 is still the line in the sand for the moment, and just above S2 at 6945 for today. S1 is at 6985 and should it get really bearish initially from this 7035 level we are at as I write this, we may well see this tested and hold. The bears are certainly probing the bulls weaknesses at the moment, and in fact the 30m S&P chart has resistance at 4176 to start with, They really need to defend the 2h supports at 4144 and 4132 for a push back up towards the 4200 area. Otherwise the bears are going to take control.
Initial resistance this morning is at R1 at 7050, and we may well see a modest reaction off this, especially if the SP starts a bit bearish and the Dax drops down towards the pivot at 15423 or lower to start with. As mentioned, 7075 above this , then a push towards R3 at 7116, and the daily resistance level of 7125. Should we get this high then a short here looks to be worth a go.
The 10 day Raff channels has turned down for the first time in a while, and resistance on that is at 7192 for today. I dont expect to see that level reached today, but we could start to see the bears getting stronger and rallies being shorted as we head towards the end of May. Sell in May and go away may well see a bit of action this week.
So, looking at 7050 and then 7075 as the main resistance levels, 7010-7000 as the main support with 6985 and 6950 below that. Good luck today.
Recommended Broker

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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 24th May 2021

The FTSE 100 traded flat for most of the day on Friday, despite new data showing the UK economy is enjoying an 'unprecedented growth spurt' as it emerges from lockdown. Having dipped below the 7,000 mark in the morning, London's main index was down 1.75pc to close at 7,018.05 in a choppy week where the index hit a one week high and a six-day low in the space of only 24 hours.

The pound rose to $1.42 at one point on Friday, as the Office for National Statistics said retail sales surged 9.2pc in April - double the rate economists expected. Eventually it closed up 0.02pc versus the US dollar, $1.418 and was up 0.03pc against the euro at €1.162.

Bitcoin clawed its way back to $40,000 after this week's cryptocurrency clash sparked by regulation fears in China. The coin managed to hold the $40,000 level for most of London trading until late afternoon China's Vice Premier Liu He reiterated the government's intention to crackdown on Bitcoin mining and trading, sending the currency skidding to $36,756.24, down 8pc just after London closed.

Wild Ride

Bitcoin’s extreme volatility continued to whipsaw investors with double-digit percentage moves. Bitcoin traded down as much as 18% at one point Sunday. Other cryptocurrencies, including Ethereum and Dogecoin, also slumped. Earlier in the weekend, Bitcoin had climbed more than 8% following a tweet from Elon Musk that he would back crypto in the battle against fiat currencies. Meanwhile, former U.S. Treasury Secretary Lawrence Summers said cryptocurrencies could stay a feature of global markets as something akin to “digital gold,” even if their importance in economies will remain limited.

Mixed Markets

Stocks in Asia are set to start the week mixed amid volatile trading in high-risk assets such as Bitcoin and ongoing concerns about the outlook for inflation. Currencies were steady in early trading. On Friday, the S&P 500 closed little changed after erasing earlier gains, while the tech-heavy Nasdaq 100 finished lower. Futures edged higher in Japan and were modestly lower in Australia and Hong Kong. U.S. futures opened little changed and oil edged higher.[Bloomberg]

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US & Asia Overnight from Bloomberg

U.S. equity futures fluctuated and Asian stocks were steady Monday as traders weighed the volatile slump in cryptocurrencies, the inflation outlook and China’s intensifying effort to cool raw-materials prices.

Shares posted modest gains in Japan and Australia but retreated in Hong Kong. S&P 500, Nasdaq 100 and European equity contracts oscillated after U.S. stocks closed mixed on Friday. Bitcoin advanced to about $35,100 following another weekend of big swings.

The stalling commodities boom remains in focus as China tries to temper speculation, with the nation vowing severe punishment for violations ranging from excessive speculation to spreading fake news.

Market-based gauges of inflation expectations have declined of late, but concerns linger that the post-pandemic recovery could stoke price pressures and force a pullback in extraordinary central bank support. Treasury yields and the dollar were steady.

Global equities have lost some steam and speculative ardor for riskier investments like Bitcoin has declined after a prolonged rally from pandemic lows. While the economic recovery from the health crisis offers background support for sentiment, investors are wary that policy makers may eventually have to curb stimulus. Some countries also still face Covid-19 spikes.

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

Good fight back on Friday from the bulls again, defending the 6970 level and the price has remained above 7000 since. That should bode well for a rise towards the 7075 resistance level and we have a bullish 2 hour chart for the moment as well. Support from both the Hull and coral is at 7000 so it would be good to see any dip to there defended to set up a bull Monday.

Should the bears break below 7000 then 6950 is still the line in the sand for the moment, and just above S2 at 6945 for today. S1 is at 6985 and should it get really bearish initially from this 7035 level we are at as I write this, we may well see this tested and hold. The bears are certainly probing the bulls weaknesses at the moment, and in fact the 30m S&P chart has resistance at 4176 to start with, They really need to defend the 2h supports at 4144 and 4132 for a push back up towards the 4200 area. Otherwise the bears are going to take control.

Initial resistance this morning is at R1 at 7050, and we may well see a modest reaction off this, especially if the SP starts a bit bearish and the Dax drops down towards the pivot at 15423 or lower to start with. As mentioned, 7075 above this , then a push towards R3 at 7116, and the daily resistance level of 7125. Should we get this high then a short here looks to be worth a go.

The 10 day Raff channels has turned down for the first time in a while, and resistance on that is at 7192 for today. I dont expect to see that level reached today, but we could start to see the bears getting stronger and rallies being shorted as we head towards the end of May. Sell in May and go away may well see a bit of action this week.

So, looking at 7050 and then 7075 as the main resistance levels, 7010-7000 as the main support with 6985 and 6950 below that. 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 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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