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Start of the month end of the week | 7580 7560 7480 support | 7630 7670 resistance

#1 · 1st June 2022, 9:11 am

Quote from Nick on 1st June 2022, 9:11 am
FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 managed modest growth Tuesday after a jump in Unilever's shares offset a plunge by retailer B&M. By the end of the day the index was up 0.1%, hitting 7,607.
Unilever's big push upwards, to the tune of 9.4pc, was a welcome for Nelson Peltz, an activist investor appointed to the consumer giant's board earlier today. Rumours of Peltz taking a stake in the firm have been swirling for months. The stake was confirmed at 1.5pc, making his group one of Unilever's biggest shareholders. Conversely, B&M reported an unwelcome dip in sales and the departure of chief executive and founder Simon Arora.
Stocks in Asia were mixed Wednesday and bond yields extended their advance amid a debate about the scale of monetary tightening to fight inflation.
Equities climbed in Japan as the yen weakened. A pullback in technology stocks and reopening challenges were a drag in Hong Kong. Sluggish Chinese manufacturing data and the government’s pursuit of Covid Zero weighed on shares and the yuan. US futures rose after benchmarks retreated Tuesday.
Treasuries extended a decline, pushing 10-year yields closer to 2.9% as traders raised bets on Federal Reserve interest-rate hikes. Euro-zone consumer prices jumped 8.1% to a record from a year earlier in May, further spooking investors. The dollar advanced.
Oil rose to near $115 a barrel as investors assessed the future of OPEC+ unity, just as ministers from the group prepare to meet on Thursday to discuss its supply policy for July. Crude rose after advancing about 10% in May, stoking inflation worries.
President Joe Biden used a rare meeting with Federal Reserve Chair Jerome Powell to declare that he’s respecting the central bank’s independence - while simultaneously shifting responsibility for taming decades-high inflation ahead of the November midterms. The meeting came ahead of US payroll numbers Friday.
Mortgage lending
Mortgage lending fell by more than a third in April, stoking fears of a slowdown in house prices. Total lending for house purchases slumped to £4.1bn, from £6.4bn in March, as the impact of higher interest rates kicked in. Data from the Bank of England showed mortgage approvals fell to around 66,000 over the month, compared with 70,700 in March.
Turning Off the Taps
Russia cut off the gas to more European buyers, stepping up its use of energy as a weapon, after buyers refused to pay in rubles. Gazprom halted pipeline shipments to the Netherlands and Denmark this week, and cut off a small contract supplying Germany. The moves came as the European Union clinched a deal to partially ban Russian oil imports, potentially costing Vladimir Putin $10 billion in lost export revenue. The ban could leave Russia even more dependent on China and India to snap up the oil Europe doesn’t want. It could also add a fresh jolt to surging consumer prices.
FTSE 100 live outlook prediction analysis for 1st June 2022
Start of the new month but also the last day of the shortened week, so a rise and dip would make sense - firstly as the new month money flows in, then profit taking ahead of the long weekend for the Jubilee holiday. The bulls have so far failed to really push on past the 7630 level despite a couple of goes, but if they do so then the 7670 level remains valid resistance, with 7690 above that.
For support, the bulls will be looking to defend the 7600 level initially and then the 7580 level below that where we have the 30m 200ema.
We also have NFP on Friday this week though obviously the FTSE100 will be closed that day, but we may well see a bit of buy the rumour sell the news ahead of that on the US markets. As such the S&P may well defend the 4100 level in the short term. The bulls will be looking to break above the 4170 level today though on that as that would allow them to target the 4200 level again.
That would help pull the FTSE up towards those 7670 and 7690 levels as well. I imagine that they will want to close the week out strongly on the FTSE though, so any profit taking later on may well just be a small dip.
The daily chart remains bullish, though a test of the 25ema at 7500 now hasn't yet happened - should we dip that low then we have a bit of swing long territory here. The daily Raff channels are also heading up strongly, especially the 10d as you can see on the daily chart, suggesting more upside to come. The bulls have certainly down well to hold it around the 7600 level this week, helped by oil rising again no doubt and cable dropping back a bit. It was pretty resilient yesterday too, as the S&P dropped down to the 4100 level the FTSE100 didn't really follow!
Below 7580 then the bears would be looking for the key fib at 7560 initially, then the 7530 level for S2. We would then start to get near that daily support, and also S3 at 7487. I am not expecting a drop down to that level today though, but maybe if NFP drives a drop on Friday the futures prices may well get there at the end of the week.
So, more of the same today as this week by the look of it, with that 7630 area still looking key to start with.
Have a great long weekend and back on the email on Monday! Have a good session 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

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

The FTSE 100 managed modest growth Tuesday after a jump in Unilever's shares offset a plunge by retailer B&M. By the end of the day the index was up 0.1%, hitting 7,607.

Unilever's big push upwards, to the tune of 9.4pc, was a welcome for Nelson Peltz, an activist investor appointed to the consumer giant's board earlier today. Rumours of Peltz taking a stake in the firm have been swirling for months. The stake was confirmed at 1.5pc, making his group one of Unilever's biggest shareholders. Conversely, B&M reported an unwelcome dip in sales and the departure of chief executive and founder Simon Arora.

Stocks in Asia were mixed Wednesday and bond yields extended their advance amid a debate about the scale of monetary tightening to fight inflation.

Equities climbed in Japan as the yen weakened. A pullback in technology stocks and reopening challenges were a drag in Hong Kong. Sluggish Chinese manufacturing data and the government’s pursuit of Covid Zero weighed on shares and the yuan. US futures rose after benchmarks retreated Tuesday.

Treasuries extended a decline, pushing 10-year yields closer to 2.9% as traders raised bets on Federal Reserve interest-rate hikes. Euro-zone consumer prices jumped 8.1% to a record from a year earlier in May, further spooking investors. The dollar advanced.

Oil rose to near $115 a barrel as investors assessed the future of OPEC+ unity, just as ministers from the group prepare to meet on Thursday to discuss its supply policy for July. Crude rose after advancing about 10% in May, stoking inflation worries.

President Joe Biden used a rare meeting with Federal Reserve Chair Jerome Powell to declare that he’s respecting the central bank’s independence - while simultaneously shifting responsibility for taming decades-high inflation ahead of the November midterms. The meeting came ahead of US payroll numbers Friday.

Mortgage lending
Mortgage lending fell by more than a third in April, stoking fears of a slowdown in house prices. Total lending for house purchases slumped to £4.1bn, from £6.4bn in March, as the impact of higher interest rates kicked in. Data from the Bank of England showed mortgage approvals fell to around 66,000 over the month, compared with 70,700 in March.

Turning Off the Taps
Russia cut off the gas to more European buyers, stepping up its use of energy as a weapon, after buyers refused to pay in rubles. Gazprom halted pipeline shipments to the Netherlands and Denmark this week, and cut off a small contract supplying Germany. The moves came as the European Union clinched a deal to partially ban Russian oil imports, potentially costing Vladimir Putin $10 billion in lost export revenue. The ban could leave Russia even more dependent on China and India to snap up the oil Europe doesn’t want. It could also add a fresh jolt to surging consumer prices.

FTSE 100 live outlook prediction analysis for 1st June 2022

Start of the new month but also the last day of the shortened week, so a rise and dip would make sense - firstly as the new month money flows in, then profit taking ahead of the long weekend for the Jubilee holiday. The bulls have so far failed to really push on past the 7630 level despite a couple of goes, but if they do so then the 7670 level remains valid resistance, with 7690 above that.

For support, the bulls will be looking to defend the 7600 level initially and then the 7580 level below that where we have the 30m 200ema.

We also have NFP on Friday this week though obviously the FTSE100 will be closed that day, but we may well see a bit of buy the rumour sell the news ahead of that on the US markets. As such the S&P may well defend the 4100 level in the short term. The bulls will be looking to break above the 4170 level today though on that as that would allow them to target the 4200 level again.

That would help pull the FTSE up towards those 7670 and 7690 levels as well. I imagine that they will want to close the week out strongly on the FTSE though, so any profit taking later on may well just be a small dip.

The daily chart remains bullish, though a test of the 25ema at 7500 now hasn't yet happened - should we dip that low then we have a bit of swing long territory here. The daily Raff channels are also heading up strongly, especially the 10d as you can see on the daily chart, suggesting more upside to come. The bulls have certainly down well to hold it around the 7600 level this week, helped by oil rising again no doubt and cable dropping back a bit. It was pretty resilient yesterday too, as the S&P dropped down to the 4100 level the FTSE100 didn't really follow!

Below 7580 then the bears would be looking for the key fib at 7560 initially, then the 7530 level for S2. We would then start to get near that daily support, and also S3 at 7487. I am not expecting a drop down to that level today though, but maybe if NFP drives a drop on Friday the futures prices may well get there at the end of the week.

So, more of the same today as this week by the look of it, with that 7630 area still looking key to start with.

Have a great long weekend and back on the email on Monday! Have a good session 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