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Still short the rallies with 6085 6140 resistance | 6030 6002 support | Service sector positive

#1 · 6th August 2020, 10:29 am

Quote from Nick on 6th August 2020, 10:29 am
FTSE 100 live outlook prediction analysis for 6th August 2020
The FTSE 100 closed 1.07pc higher Wednesday to 6,100.38 while the FTSE 250 climbed 1.91pc with mining companies leading the rally alongside oil and gas, house builders, banks and airlines. Gold continued its climb, up 1.26pc to a record $2043 per ounce. In the eurozone the Frankfurt DAX and Paris CAC was up 0.4pc and 0.8pc respectively.
Here’s a reminder of the day’s top stories:
Services sector returns to growth as economy reopens: Growth is back as businesses in the services sector reported their strongest expansion for five years last month.
Insurer Hastings agrees £1.7bn takeover by biggest shareholder: Motor and home insurer Hastings has agreed to be taken over by a consortium that includes its biggest shareholder in a deal that values the firm at £1.7bn.
Sweden suffers record plunge despite lighter lockdown: Sweden’s light-touch lockdown failed to spare its economy from a historic plunge in GDP as Covid-19 triggered a collapse in exports and spending.
Car sales rebound eases pressure on automotive sector: Motorists returning to car showrooms after lockdown ended drove the first rise in sales of new vehicles this year, with an 11.3pc rise in registrations last month.
William Hill warns in-store betting will never recover: William Hill is to shut another 119 high street betting shops after warning that in-store gambling will never recover to pre-crisis levels.
Legal & General sticks to dividend payout despite profits slide: Pensions and savings firm Legal & General maintained its interim dividend despite a slump in profits sparked by interest rate cuts and lower valuations on some of its investments.
Metro Bank sinks to £241m loss and tells staff to keep working from home: Embattled Metro Bank, which is fighting to revive its fortunes following a loans scandal last year, has swung to a large loss as it prepares for a slump in house prices and a rise in unemployment.
Markets Muted
Asian stocks looked set for a muted start after three days of gains. U.S. equities earlier climbed amid encouraging news on the vaccine front and speculation lawmakers are making progress on an economic aid package, while the dollar fell. Futures in Japan and Hong Kong were flat, while those in Australia edged higher. The S&P 500 Index rose to within 2% of its record closing high. Ten-year Treasury yields climbed. Oil rose after a government report showed a decline in U.S. stockpiles, while gold continued its ascent above a record $2,000 an ounce.[Bloomberg]
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FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
A rally in Asian stocks faltered Thursday as investors weighed more signs of tension with U.S.-China relations and ongoing negotiations on an American stimulus package. The dollar dipped toward its lowest in almost two years. Hong Kong shares saw the bulk of losses, with China and Japan modestly lower. Equities in South Korea and Australia outperformed. S&P 500 contracts edged up after the gauge rose to within 2% of its record closing high in the wake of encouraging news on the vaccine front. Ten-year Treasury yields were steady, while crude oil fluctuated. Gold remained above $2,000 an ounce. The offshore yuan touched a five-month high. The pound was steady ahead of the Bank of England decision that could pave the way for more stimulus.
The bulls held on well yesterday and we had a brief move above the 6100 level before dropping back. We still have the daily resistance levels getting nearer, with the 25ema at 6127, then the top of the 10 day Raff at 6182. Splitting these two we have general daily resistance at the 6141 level so a short at around this area looks to be worth taking. The bulls will of course be keen to push past the 6180 level and then we get near to the daily coral line at 6229.
I am expecting an initial rise to the 30min coral line which is now red and we may well see a reaction at he 6085 level initially and just above the daily pivot at 6069. If the bears have a go there then we may well see a drop down to the 6025 level where we have S1 and also support on the 2 hour chart from the Hull moving average. As such keep an eye on this level for a bounce.
Gold has hit 2055 and we may well see a pause at this level from its recent run. A small pull back from here while it cements its move above $2000 would fit quite well before the next leg up.
The S&P has now passed the 3320 level and 3358 is my next resistance level of note on that. Its also steadily rising and of course we have the July jobs report tomorrow as well which will provide further direction. An overnight high at 3335 was sold into with a drop back down to the 3320 level - that resistance level now becoming support for the short term.
The rise on the the FTSE 100 has certainly been lagging the US markets, weighed down by cable mainly. And it will be interesting to see what it does as it get to those daily resistance levels. If the bears really do grab it then we may well be back on a path to the bottom of the Raff channels, sitting around the 5750 currently. So far the traditional August weakness hasn't come through, as the markets are of course being underpinned by stimulus measures and the "do whatever it takes" sentiment.
In the absence of much selling yesterday, the bulls are still in control and I am still expecting a rise to that 6140 area - bit surprising they didnt manage it yesterday though. Watching 6127, 6141, 6182 for resistance, 6025 for support today. Good luck.
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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.
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FTSE 100 live outlook prediction analysis for 6th August 2020

The FTSE 100 closed 1.07pc higher Wednesday to 6,100.38 while the FTSE 250 climbed 1.91pc with mining companies leading the rally alongside oil and gas, house builders, banks and airlines. Gold continued its climb, up 1.26pc to a record $2043 per ounce. In the eurozone the Frankfurt DAX and Paris CAC was up 0.4pc and 0.8pc respectively.

Here’s a reminder of the day’s top stories:

Services sector returns to growth as economy reopens: Growth is back as businesses in the services sector reported their strongest expansion for five years last month.
Insurer Hastings agrees £1.7bn takeover by biggest shareholder: Motor and home insurer Hastings has agreed to be taken over by a consortium that includes its biggest shareholder in a deal that values the firm at £1.7bn.
Sweden suffers record plunge despite lighter lockdown: Sweden’s light-touch lockdown failed to spare its economy from a historic plunge in GDP as Covid-19 triggered a collapse in exports and spending.
Car sales rebound eases pressure on automotive sector: Motorists returning to car showrooms after lockdown ended drove the first rise in sales of new vehicles this year, with an 11.3pc rise in registrations last month.
William Hill warns in-store betting will never recover: William Hill is to shut another 119 high street betting shops after warning that in-store gambling will never recover to pre-crisis levels.
Legal & General sticks to dividend payout despite profits slide: Pensions and savings firm Legal & General maintained its interim dividend despite a slump in profits sparked by interest rate cuts and lower valuations on some of its investments.
Metro Bank sinks to £241m loss and tells staff to keep working from home: Embattled Metro Bank, which is fighting to revive its fortunes following a loans scandal last year, has swung to a large loss as it prepares for a slump in house prices and a rise in unemployment.

Markets Muted
Asian stocks looked set for a muted start after three days of gains. U.S. equities earlier climbed amid encouraging news on the vaccine front and speculation lawmakers are making progress on an economic aid package, while the dollar fell. Futures in Japan and Hong Kong were flat, while those in Australia edged higher. The S&P 500 Index rose to within 2% of its record closing high. Ten-year Treasury yields climbed. Oil rose after a government report showed a decline in U.S. stockpiles, while gold continued its ascent above a record $2,000 an ounce.[Bloomberg]

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

A rally in Asian stocks faltered Thursday as investors weighed more signs of tension with U.S.-China relations and ongoing negotiations on an American stimulus package. The dollar dipped toward its lowest in almost two years. Hong Kong shares saw the bulk of losses, with China and Japan modestly lower. Equities in South Korea and Australia outperformed. S&P 500 contracts edged up after the gauge rose to within 2% of its record closing high in the wake of encouraging news on the vaccine front. Ten-year Treasury yields were steady, while crude oil fluctuated. Gold remained above $2,000 an ounce. The offshore yuan touched a five-month high. The pound was steady ahead of the Bank of England decision that could pave the way for more stimulus.

The bulls held on well yesterday and we had a brief move above the 6100 level before dropping back. We still have the daily resistance levels getting nearer, with the 25ema at 6127, then the top of the 10 day Raff at 6182. Splitting these two we have general daily resistance at the 6141 level so a short at around this area looks to be worth taking. The bulls will of course be keen to push past the 6180 level and then we get near to the daily coral line at 6229.

I am expecting an initial rise to the 30min coral line which is now red and we may well see a reaction at he 6085 level initially and just above the daily pivot at 6069. If the bears have a go there then we may well see a drop down to the 6025 level where we have S1 and also support on the 2 hour chart from the Hull moving average. As such keep an eye on this level for a bounce.

Gold has hit 2055 and we may well see a pause at this level from its recent run. A small pull back from here while it cements its move above $2000 would fit quite well before the next leg up.

The S&P has now passed the 3320 level and 3358 is my next resistance level of note on that. Its also steadily rising and of course we have the July jobs report tomorrow as well which will provide further direction. An overnight high at 3335 was sold into with a drop back down to the 3320 level - that resistance level now becoming support for the short term.

The rise on the the FTSE 100 has certainly been lagging the US markets, weighed down by cable mainly. And it will be interesting to see what it does as it get to those daily resistance levels. If the bears really do grab it then we may well be back on a path to the bottom of the Raff channels, sitting around the 5750 currently. So far the traditional August weakness hasn't come through, as the markets are of course being underpinned by stimulus measures and the "do whatever it takes" sentiment.

In the absence of much selling yesterday, the bulls are still in control and I am still expecting a rise to that 6140 area - bit surprising they didnt manage it yesterday though. Watching 6127, 6141, 6182 for resistance, 6025 for support today. 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 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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