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Still bullish but the pivots need to hold this morning | 7842 7780 support | 7874 7907 resistance

#1 · 16th January 2023, 10:15 am

Quote from Nick on 16th January 2023, 10:15 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 16th January 2023
Asian shares firmed on Monday as optimism about China's reopening offset concerns the Bank of Japan (BOJ) might temper its super-sized stimulus policy at a pivotal meeting this week, while a holiday in U.S. markets made for thin trading. The yen climbed to its highest since May after rumours swirled the BOJ might hold an emergency meeting on Monday as it struggles to defend its new yield ceiling in the face of massive selling.
After a strong Friday we may well see a bit of consolidation today and in fact it is a bit of a mixed bag chart wise to start with. The key looks to be if the bulls defend the daily pivot at the off at the 7840 level. If that holds then we should get a rise towards the 7900 area, and a test of the daily resistance at 7895. However if we get an early break of the daily pivot then a drop down to the 7780 level may well play out and a test of the decent cluster of supports that we have there.
Should we drop down to there then I would like to see that hold for a bounce back toward the 7850 or higher level and a bit of a bull Monday once again.
It's a similar picture with the Dax and it needing to hold the daily pivot at 15115 to start with, otherwise a slide down to the 14990 area looks to be likely.
Anyway, back to the FTSE and if the bulls do defend the pivot then 7900 are as mentioned, with the 7947 R3 level not completely out of the question. We do have more earnings out this week, with the banks likely to drive some index movements too. With 8000 tantalisingly close, the possibility of inflation falling a bit more and in turn maybe less aggressive interest rate rises, it does play into the bull hands.
The MSM are trying to push the negative narrative still and talk the UK and the world into a recession so it will be interesting to see how it does pan out. The mortgage market will be the one to keep an eye on come the summer when lots of the 2 year fixes end that were taken out with that post-covid lockdown spending splurge on houses. If the defaults start coming through.....
Support wise for the FTSE100, 7840 for the daily pivot to start with and it would be good to see this hold, otherwise 7819 for S1 would probably appear in fairly short order. Below that then the 7780 area as mentioned is decent support with S2, 200ema and the key fib all around here. A bounce off this would therefore make sense. It's also just below the green 2h coral though not the first test of that.
So, expect a bit of chop today, bit generally all still looks bullish for the moment.....
Good luck.
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FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 16th January 2023

Asian shares firmed on Monday as optimism about China's reopening offset concerns the Bank of Japan (BOJ) might temper its super-sized stimulus policy at a pivotal meeting this week, while a holiday in U.S. markets made for thin trading. The yen climbed to its highest since May after rumours swirled the BOJ might hold an emergency meeting on Monday as it struggles to defend its new yield ceiling in the face of massive selling.

After a strong Friday we may well see a bit of consolidation today and in fact it is a bit of a mixed bag chart wise to start with. The key looks to be if the bulls defend the daily pivot at the off at the 7840 level. If that holds then we should get a rise towards the 7900 area, and a test of the daily resistance at 7895. However if we get an early break of the daily pivot then a drop down to the 7780 level may well play out and a test of the decent cluster of supports that we have there.

Should we drop down to there then I would like to see that hold for a bounce back toward the 7850 or higher level and a bit of a bull Monday once again.

It's a similar picture with the Dax and it needing to hold the daily pivot at 15115 to start with, otherwise a slide down to the 14990 area looks to be likely.

Anyway, back to the FTSE and if the bulls do defend the pivot then 7900 are as mentioned, with the 7947 R3 level not completely out of the question. We do have more earnings out this week, with the banks likely to drive some index movements too. With 8000 tantalisingly close, the possibility of inflation falling a bit more and in turn maybe less aggressive interest rate rises, it does play into the bull hands.

The MSM are trying to push the negative narrative still and talk the UK and the world into a recession so it will be interesting to see how it does pan out. The mortgage market will be the one to keep an eye on come the summer when lots of the 2 year fixes end that were taken out with that post-covid lockdown spending splurge on houses. If the defaults start coming through.....

Support wise for the FTSE100, 7840 for the daily pivot to start with and it would be good to see this hold, otherwise 7819 for S1 would probably appear in fairly short order. Below that then the 7780 area as mentioned is decent support with S2, 200ema and the key fib all around here. A bounce off this would therefore make sense. It's also just below the green 2h coral though not the first test of that.

So, expect a bit of chop today, bit generally all still looks bullish for the moment.....

Good luck.

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