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UK GDP 0.1% Q1 | 7796 7820 resistance | 7737 7690 support | Bulls defending

#1 · 12th May 2023, 9:17 am

Quote from Nick on 12th May 2023, 9:17 am
FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 live outlook prediction analysis for 12th May 2023
The FTSE 100 closed 0.14pc lower at 7,730.58. The blue-chip index made a slight recovery in the afternoon, after reaching a seven-day low at the 7690 support area. as commodity-linked stocks and banks fell after the Bank of England lifted borrowing costs to their highest levels since 2008.
Most Asian share markets were subdued on Friday and the dollar held onto its gains from safe-haven flows, after soft economic data from U.S. and China magnified concerns of a global slowdown, although Japanese stocks outperformed.
Overight, data showed U.S. jobless claims jumped to a 1-1/2-year high last week, while producer prices rose at smallest annual increase in more than two years, hinting at potentially more abrupt slowing in the world’s largest economy. The data added confidence that Federal Reserve is almost certain to pause its rate hikes at its policy meeting in June.
The Bank of England stuck to the script by raising its key interest rate by a quarter of a percentage point to 4.5% on Thursday. It, however, vowed that it would “stay the course” to curb the highest inflation of any major economy.
For today we may well see the bulls try and continue the rise from the 7690 support level by putting in a climb towards the 7800 area.
This may well act as resistance initially as apart from being the round number, is also R1 and key fib level at 7796. As such, the bears will likely have a go here, and that may well then see a drop down to the 2h support at the 7740 level where we have the Hull MA.
Above 7800 then the bulls will be trying to 7822 which is the top of the 10d Raff channel, and then 7843 R2 above that. Might be a big ask for today, even with the recent trend of Fridays being bullish.
For the bears, then 7740 is key support to start with was we have the 2h Hull MA as mentioned, but also the daily pivot and the now green 30m coral. We may well see this hold, especially if the S&P can also defend the 4130 area this morning.
Should it break though and the bears will be aiming for yesterdays low at 7680 again, and this level looks like it might well become a fairly key support now. Below this though and then 7650 is the next area of note. That said I am not expecting it to get that low today and we will likely see a decent defence of the 7740 area.
Not much more to say, been a tricky one to analyse today but usual Friday caveat applies!
Good luck today and have a great weekend.
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FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 live outlook prediction analysis for 12th May 2023

The FTSE 100 closed 0.14pc lower at 7,730.58. The blue-chip index made a slight recovery in the afternoon, after reaching a seven-day low at the 7690 support area. as commodity-linked stocks and banks fell after the Bank of England lifted borrowing costs to their highest levels since 2008.

Most Asian share markets were subdued on Friday and the dollar held onto its gains from safe-haven flows, after soft economic data from U.S. and China magnified concerns of a global slowdown, although Japanese stocks outperformed.

Overight, data showed U.S. jobless claims jumped to a 1-1/2-year high last week, while producer prices rose at smallest annual increase in more than two years, hinting at potentially more abrupt slowing in the world’s largest economy. The data added confidence that Federal Reserve is almost certain to pause its rate hikes at its policy meeting in June.

The Bank of England stuck to the script by raising its key interest rate by a quarter of a percentage point to 4.5% on Thursday. It, however, vowed that it would “stay the course” to curb the highest inflation of any major economy.

For today we may well see the bulls try and continue the rise from the 7690 support level by putting in a climb towards the 7800 area.

This may well act as resistance initially as apart from being the round number, is also R1 and key fib level at 7796. As such, the bears will likely have a go here, and that may well then see a drop down to the 2h support at the 7740 level where we have the Hull MA.

Above 7800 then the bulls will be trying to 7822 which is the top of the 10d Raff channel, and then 7843 R2 above that. Might be a big ask for today, even with the recent trend of Fridays being bullish.

For the bears, then 7740 is key support to start with was we have the 2h Hull MA as mentioned, but also the daily pivot and the now green 30m coral. We may well see this hold, especially if the S&P can also defend the 4130 area this morning.

Should it break though and the bears will be aiming for yesterdays low at 7680 again, and this level looks like it might well become a fairly key support now. Below this though and then 7650 is the next area of note. That said I am not expecting it to get that low today and we will likely see a decent defence of the 7740 area.

Not much more to say, been a tricky one to analyse today but usual Friday caveat applies!

Good luck today and have a great weekend.

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