Quote from Nick on 12th June 2023, 9:43 am

FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help

FTSE100 analysis & prediction for 10th June 2023

Asian shares started tentatively on Monday as investors braced for central bank meetings from Europe, Japan and the United States this week, along with U.S. inflation data that will likely influence the Federal Reserve’s monetary policy path.

Futures for Euro Stoxx 50 climbed 0.4% and contracts for the S&P 500 added 0.1% after the underlying index crept further into bull-market territory on Friday. Japan’s Topix index rose 0.5%, while Hong Kong’s benchmark slipped 0.1% and markets in Australia were closed for a holiday.

Concerns over growth in China remain, while technology shares have continued to climb in the US amid bets the Federal Reserve is nearing the end of its hiking cycle.

Federal Reserve officials are ready to take a breather after more than a year of driving up interest rates. Policymakers are expected to leave rates in a range of 5% to 5.25% at their meeting this week, allowing them to take stock of the outlook following recent strains in the banking sector.

That was a decent bounce on Friday on the S&P500, that saw a climb to the 4320 resistance level. The FTSE100 wasn't quite so keen and dropped down to 7550 before bouncing. The 7600 remains the key level that the bulls will be looking to break today and also to hold above. If they manage that then I am thinking that a rise towards the 7633 level where we have the key fib is highly likely., at least to start with today.

That is also just below the 7640 daily resistance level so we may well see a reaction here and a drop back down to the 7600 level. We could see a bit of a bull Monday, ahead of ECB rate rises later this week.

Above 7640 then the next main level is the 7700 round number. Not beyond the realms of possibility either this week if the S&P500 pushes on towards the 4400 level as well

Support wise, then the 7575 daily pivot and 30m coral line offer support here, whilst below this then the bears will be aiming for the 7533 key fib level. Below that the next daily level of note is the 7500 round number.

The 2h chart is currently bearish after that move down on Friday, and has a now red 2h coral at 7620, along with the Hull MA slightly lower at 7610. It will be interesting to see if the bulls try and pop through this today.

The 10d Raff channel is now heading up as well as the "buy the dips" has kicked in over the past few sessions. There is a chance for a rise towards the now red daily coral at 7744 on that as well, though 7649 is the 25ema for a further test of that resistance line.

I am thinking that we could be on for a tricky week this week. Central banks once again coming to the fore, along with these key US events this week:
1. May CPI Inflation data - Tuesday
2. May PPI Inflation data - Wednesday
3. June Fed meeting - Wednesday
4. Retail Sales data - Thursday
5. Initial Jobless Claims - Thursday
6. 2 Fed speakers Friday, blackout period ends

Good luck today.

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