FTSE 100 Analysis | Trading Signals | Forecast | Prediction | Analysis
A fairly steady day on Friday saw the FTSE hold above the 7000 level, and the bulls managed to defend the 7045 level which was the 200ema on the 30m chart. After the wobble on Monday that saw the FTSE drop to 6830, the bulls will be relieved to see the price remaining above 7000. The news flow continues to be pretty negative so we may well see the FTSE100 rise as in the perverse world of the markets it usually manages to climb a wall of worry! Such is FTSE 100 analysis!
The amber list has been scrapped and double-vaccinated travellers will no longer have to take a PCR test when returning from a non-red list country in a major shake-up of UK travel rules.
Futures ave risen Sunday night and the FTSE 100 is back above 7100 as I write this in what could potentially be another decent bull Monday, if the S&P can break above 4480 where we had the top of the 10d Raff channel on Friday.
Germany’s centre-left Social Democrats (SPD) won the biggest share of the vote in a national election on Sunday, narrowly beating outgoing Chancellor Angela Merkel ‘s Christian Democrats (CDU) in a closely fought race that will determine who succeeds the long-time leader. Election officials said early on Monday that a count of all 299 constituencies showed the SPD won 25.9 per cent of the vote, ahead of 24.1 per cent for the CDU. No winning party in a German national election had previously taken less than 31 per cent of the vote.
China may be diving head first into a power supply shock that could hit its economy hard, just as the Evergrande crisis sends shockwaves through its financial system. Almost half of China’s 23 provinces missed energy intensity targets set by Beijing and are now under pressure to curb power use. Meanwhile, Evergrande’s electric-car unit will not proceed with a proposed issue of yuan-denominated shares, according to a filing to the Hong Kong stock exchange. The decision adds more uncertainty to the company’s liquidity situation. Elsewhere, China has emerged as the biggest risk to emerging-market investors, who fear Evergrande, virus curbs and consumer spending cuts will further stall the economy. Some are looking to diversify into markets less reliant on China’s growth, such as India and Egypt.
FTSE 100 live outlook prediction analysis for 27th September 2021
The bulls have thrown caution to the wind and are continuing to push on and in fact we are nearly now at the 7130 resistance level having risen 30 points since starting this email at 6am! The chart bodes well for continued upside and the 30m chart has decent support at 7055 so any dip down to that level will likely see a bounce here.
Initial resistance is at the key fib and R2 level at 7130 and also a double top with Thursday’s high there. That is also a second test of the daily coral line which we dropped off from previously as you can see in the daily Raff channel chart below. As such we may well see a slight stutter here on any early strength, and a drop down to the key support levels the first of which is at the 7066 area with the daily pivot and green 30m coral here.
Above 7130 level the next main target will be the 7157 R3 level then a better looking resistance level of 7185 above that where we have the top of the 20d Raff channel. If the bulls can break above that today then 7235 top of the 10 day Raff channel is the next key area, and the FTSE has certainly shaken off the threat of a drop down below 6800.
If the bears where to break below 7055 today then 7028 is the key fib support, with 7057 2h coral (green) also there. Below that then 7011 would beckon and with S2 at 7007, likely hold. The bulls would certainly be keen to defend the 700 level on any weakness early this week.
Now the bulls have got the price back above the daily 25ema at 7070 they will be keen to build on that and push towards the 7200 level early this week.
A quick look at the S&P500 has 4480 as main resistance to start with today, with 4490 and 45000 above that. The main support is 4445 where we have the daily pivot and the green 30m coral (confirmed uptrend).
Not too much more to say really, looking at a decent bull Monday I feel, with 7130, 7181 the main resistance levels and 7065 the main support. Good luck today.
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