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Still weak as the bulls cant get 4400 | 7065 7107 resistance | 7010 6944 6908 support

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

  • FTSE 100 rose 1pc yesterday while Wall Street rebounds after tech rout

The multiple crises striking Boris Johnson’s Government have not gone unnoticed by international investors as they hunker down for a volatile sterling.  One-month implied volatility in the pound - a market-based gauge of investors’ expectations for swings in the currency - is at its highest level since March, when the impact of the coronavirus was still the key concern for investors. Markets are not expecting smooth sailing for sterling any time soon.

Asian stocks and U.S. futures dipped Wednesday as Treasury yields extended an advance amid a surge in energy costs that threatens to stoke inflationary pressures. The dollar ticked higher.

FTSE 100 live outlook prediction analysis for 6th October 2021

Nice drop off the 7083 resistance level overnight but today's picture is less clear. The S&P has surrendered some of gains from yesterday as well and is now back at the 4320 support level, though following that rise, the 2h chart is bullish with 4300 showing as support. The bears might try and take it down again and if so they will be aiming to break the 4270 level which was the recent low. The bottom of the Raffs are around the 4205 level and its possible that we get another leg down before the bulls reappear. For them to start getting control they will need to get the price above the 4401 level where we have the 25ema on the daily.

For the FTSE100, we are on S1 as I write this at 7025 and in fact have closed the rest of that short from 7083 as I think we may well see a bit of an early bounce. The 30m coral is at 7068 this morning and we may see a rise to this and then back down, as that line is now red (shows a bearish trend). We have dipped below the 7040 2h Hull MA support line but the bulls will need to be quick out the blocks to recapture this level.

Bit of a mixed bag on the cards for today - nothing overly clear really and we are in a sort of no mans land to be totally honest! The 10d Raff has turned down again for today, so the bulls are losing the battle at the moment.

Above the 7068 level then 7107 is the next key resistance as we have the key fib and the R1 level here. Above that then 7137, which also ties in with the daily resistance at 7143 so should we get this high then a short here is worth a go.

For the bears, a break of the key fib support at 7012 may well see us test S2 at 6974, and having the price back below 7000 wouldn't be ideal for the bulls. They will be fighting hard to defend that key level though. Generally I am still thinking that once this shake out ends we will see a strong end to the year, despite the media sensationalising all the doom and gloom.

Good luck today.

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