FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 ended higher Wednesday as gains in industrial and financial stocks helped counter concerns over the impact of the Omicron coronavirus variant on economic recovery and weaker-than-expected quarterly growth data. After falling as much as 0.33pc, the blue-chip index reversed course to close 0.6pc higher at 7,341.
Stocks advanced Thursday after the latest coronavirus studies stirred hopes that the global recovery can weather the omicron flareup.
Japan helped MSCI Inc.’s Asia-Pacific share index rise for a third day. Technology stocks in Hong Kong lagged amid a slide in JD.com Inc. on Tencent Holdings Ltd.’s plan to distribute shares in the online retailer as a one-time dividend. Trading volumes thinned in many markets ahead of Christmas.
European futures were in the green and U.S. contracts were steady after the S&P 500 closed in on its record high. Brighter U.S. consumer confidence and home sales aided sentiment, as did studies signaling omicron may be less likely to land patients in hospital than the delta variant.
The dollar held most of a drop from U.S. hours and Treasury yields were steady. Oil rose to about $73 a barrel. Bitcoin slipped toward $48,000.
Mixed Signals
Omicron infections are far less likely to land patients in the hospital than delta cases, but the variant is more contagious, according to a Scottish preliminary study. The data add to earlier findings that South Africans are 80% less likely to be hospitalized if they catch the new strain, but once admitted the risk of serious disease is the same. Elsewhere, the U.K. reported more than 100,000 new cases in a day for the first time; Spain will again mandate masks outdoors; the WHO warned that the focus on booster shots may prolong the pandemic, arguing the focus of immunizations must remain on decreasing deaths and severe disease.
FTSE 100 live outlook prediction analysis for 23rd December 2021
Final push of the year underway across the board from the bulls and having got the dip and rise yesterday (albeit only down to 7270) we should see the same again IF the bulls can break above the 7380 resistance level. The also ties in with the daily level at 4715 on the S&P500.
The S&P500 looks like it will break and hold above 4700 though but maybe needs a bit of consolidation above the 4680 level before a spring higher, so an initial dip down then push higher may well play out on that again, especially if we see the 4715 level to start with.
Likewise for the FTSE100 – a push up to the 7380 resistance level may well then see a reaction and a drop down to test the 2hour supports at the 7300 level, along with S1 here at 7297. Just below this we have the 200ema and key fib for the next major support at 7284.
If the bears were to take control then a drop down to the daily support at 7260 and the 2h coral here (now green, uptrend) should see the bulls try and mount an assault. I am not sure that we will get that low today though and may well see a push up from any dip down to the 7300 level.
For the bulls, if they were to break above the 7380 level then a trip towards the 7450 level looks likely to play out. Thats the next key daily level of note, and we could see some momentum build for a push towards the top of the 10 day Raff channel at 7475 – and also R3 here. And then we are almost at the 7500 year end we have had pencilled in since the spring!!!
Tomorrow’s volume is going to be very light with a half day and US closed so we may well see a bit of a drift and nothing much happening apart from an initial flurry at the open at 8am.
So, not much more to say really. watch 7380 and 7450 as the main resistance levels today/tomorrow; 7300, 7290 and 7260 as the main supports. Good luck today, have a fantastic break and all back on it on the 4th January!
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