Quote from Nick on 15th July 2020, 10:37 am

FTSE 100 live outlook prediction analysis for 15th July 2020

The yield on UK two-year bonds dropped to a fresh record low on Tuesday as a risk-off mood on global markets drove investors towards haven assets such as bonds. Key European markets Frankfurt and Paris closed around 1pc lower as fears resurfaced over a spike in coronavirus infections and renewed lockdowns.

However, rises for some of London’s biggest listed groups – including energy giants Shell and BP – helped the FTSE 100 outperform its continental peers. The benchmark index closed 0.06pc higher at 6,179.75, also thanks to a weaker pound after data showed that the UK economy shrank by almost a fifth in the three months to April. The more domestically focused FTSE 250 slumped 1.21pc to 17,174.69.

It's Over
President Donald Trump said he issued an order to end Hong Kong’s special status with the U.S. and signed legislation that would sanction Chinese officials responsible for cracking down on political dissent in Hong Kong, the latest escalation in tensions between the world’s largest economies. Speaking in the Rose Garden, Trump used the event to repeat attacks on his Democratic opponent, Joe Biden, portraying him as having been cozy with China during his time as vice president. Trump has spent weeks blaming Beijing for the coronavirus pandemic and criticizing its handling of Hong Kong. The president has faced widespread criticism over his response to the virus, with cases once again surging as businesses reopen. The bipartisan legislation comes in response to the Chinese government’s new national security law for the former British colony, which critics say is aimed at quashing political protests and stifling dissent. Read our explainer here. [Bloomberg]

Vaccine Hope
Moderna’s Covid-19 vaccine produced antibodies to the coronavirus in all patients tested in an initial safety trial, federal researchers said. The neutralizing antibody levels produced were equivalent to the upper half of what’s seen in patients who get infected with the virus and recover, according to the results published Tuesday in the New England Journal of Medicine. The Moderna vaccine is one of the farthest along for Covid-19. While stimulating production of neutralising antibodies doesn’t prove a vaccine will be effective, it’s considered an important early step in testing. [Bloomberg]

(adsbygoogle = window.adsbygoogle || []).push({});

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

Most Asian stocks climbed along with U.S. and European equity futures on Wednesday amid optimism that progress is being made in developing a defense against the coronavirus. The dollar edged lower.

Been a bit quiet on the vaccine front recently but last night another contender appeared with favourable initial results which the market liked. A vaccine really is key so anything positive is going to be seized upon. After the bell the FTSE managed to push through the 6180 resistance level and is sitting on the key fib resistance level at 6240 as I write this. As such we may well see an initial dip down for a bit of a gap close attempt with yesterdays closing price and to test the supports that are now at 6190 with the daily pivot and the 30min coral here. The daily chart has also gone bullish again, with 6188 25ema support, not staying bearish for very long after the initial drop off the 6180 level on Monday.

It was a good sign that the 3130 S&P level mentioned in the live trading room held as that keeps alive a double test at 3230 for the moment. What sort of reaction we see there remains to be seen, but should be worth a short either way. Looks likely that we will see that today.

For the FTSE today the bias looks bullish again now (the bears had their moment in the sun cut short!). if we do get a dip down initially then 6188 looks good support. However, should the bears break below that then 6150 is the next key level, with 6115 below that. Small goes long at these levels and then adding if we do start to bounce is always worth a go as well.

Resistance wise today above the 6240 level where we have staled overnight (key fib) then 6288 is R2 and would be the next likely target for the bulls. Above this then we start looking at the top of the Raff channels (and a full crossing of the 10 day channel after testing the bottom the other day at 5995) and they sit at 6318 for the 10 day, and then 6341 for the 20 day channel. Can the bulls add another 100 points today if they break the 6240 level? Obviously with earnings season, stimulus measures, and maybe data not being as bad as feared it is certainly possible. With the daily chart going bullish again (and quite quickly reversing that bearishness form Monday) it would appear that there is more upside to come. Good luck today and keep an eye on the support levels and lets see if the bulls can build on the gain from 6100/3130 with the latter having to break 3230 for more upside.

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

[yikes-mailchimp form="4"]