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Treading water with 7155 7182 7207 resistance | 7120 7110 7092 7071 support

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

The FTSE 100 spent the day giving back its earlier strong gains from the new month money, and while ‘tech names’ like Just Eat Takeaway and Ocado have made headway it is miners that have trimmed the opening bullishness of the index.

The tech-heavy Nasdaq index reached a new record high on Wednesday, after weaker-than-expected private payrolls data raised hopes that the US central bank will extend its support for the economy.  Technology stocks, which tend to benefit from a low-rate environment, were up 0.7pc, while sectors considered as bond-proxies such as utilities rose 1.2pc. Apple jumped 1.9pc to hit record highs, while Microsoft, Google, Amazon and Netflix each gained 1pc.

FTSE 100 live outlook prediction analysis for 2nd September 2021

We got a decent rise to start with yesterday though stopped just shy of the 7195 daily resistance level. The bulls may well try again today. Traditionally, the first trading day of the month has seen 18 of last 20 be positive. The second trading day of month has seen 18 of last 20 also be positive.

I am looking at an initial drop down to the to the key fib area though at 7109 and just below S1 at 7120. If that holds then it should set up a rise back towards the 7155 level which has become key resistance on both the 30m and 2h charts. We have the Hull moving average resistance here on the 2h following the bulls failure to push on yesterday.  They therefore need to break above 7155 to resume the bullishness for today and if they do then a rise towards the 7182 R1 level, a retest of yesterday's high, and also a possible test of the 7195 daily level.

Above 7195 then were have R2 at 7216 and near enough the recent high at 7225 as well so worth keeping an eye on this area if seen. The bulls will be keen to break this level as we could then be on for a rise towards the top of the 10 day Raff channel at 7270 in due course.

For the bears they will be looking to capitalise on the bearish 30m chart we have to start with, and drive it down towards 7110. A break of that though and 7092 is S2 and the recent low as well. Below this then 7071 is the next major daily support so again, keep an eye on this level as well for a decent reaction if seen.

The S&P500 looks to be consolidating just below the ATH and could therefore be poised for a push back up and a climb towards the 4540 2h resistance level, with R2 at 4549 above that. 4557 is R3 and if they go for it today ahead of the jobs news tomorrow we may even get this high. A bit of buy the rumour sell the news possible today. Today also sees the U.S. factory orders, durable goods, trade balance and initial jobless claims data being released all of which could help or hinder the bulls in their quest to picsuh up again!

The 2h charts have gone bearish again across the board so 7151, 15860 and 4540 are the main resistance levels to watch.

Good luck today, looks like we may well get a dip and rise today.

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Asian Session

Asian stocks were mixed Thursday as Chinese technology shares pared a climb following a fresh regulatory assault from Beijing. Traders were also cautious as they await U.S. jobs data to gauge the stimulus outlook.

Chinese tech shares listed in Hong Kong came off their highs after criticism of ride-hailing firms highlighted the risks from the ongoing crackdown on private industries. China’s overall market was steady, with traders assessing a central bank step to cushion the economy by helping smaller firms. Commodity-reliant Australia’s stock index slid on weakness in materials like iron ore.

U.S. equity futures fluctuated. Overnight, the Nasdaq 100 edged up to an all-time high and the S&P 500 was little changed. The defensive flavor to trading came amid economic data suggesting a slower U.S. labor market recovery.

Ten-year U.S. Treasury yields hovered around 1.30%. U.S. payrolls data due Friday will offer clues on the economy and a possible timeline for a reduction in the Fed’s $120 billion of monthly bond purchases. The dollar held a drop.

Investors are trying to assess when the delta-variant virus outbreak might peak as well as the implications of reduced central bank policy support in the months ahead. Global stocks are near record levels and gauges of implied financial market volatility are declining, suggesting many remain optimistic that the reopening from the health crisis will weather challenges. [Bloomberg]

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