FTSE100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
FTSE100 analysis & prediction for 9th June 2023
The FTSE 100 slipped 0.32pc to 7,599.74, while the domestically-focused FTSE 250 midcap index lost 0.2pc. Surprise rate hikes by the Bank of Canada and the Reserve Bank of Australia this week have rattled investors globally, sparking concerns that major global central banks could stick to their rate tightening cycles for longer.
The European Central Bank is expected to raise key interest rates by 25 basis points on June 15 and again in July before pausing for the rest of the year as inflation remains sticky, according to a Reuters poll.
Asia-Pacific equities rose to their highest level since mid-February on Friday, taking cues from an overnight Wall Street rally as market bets firmed for the Federal Reserve to skip a rate hike next week.
The bulls tried to defend the 7600 level but whilst doing so didn’t really manage to pull it away very much. As such we have hovered around the 7620 level overnight. Fridays recently have been bullish, especially if Thursday has been, so we may well see the same again today and as such, buying the dips would be a good move. That said, it does pay to be a bit more cautious on Fridays – lower the risk etc with smaller stakes.
Initially support is at the 7600 level though it does look like we may well break lower towards the 7586 level for a test of S1. I would like to see this area hold as we also have daily support here (7582), but a break of this would see S2 at 7562 pretty easily. 7558 is also the key fib. I don’t think it will get bearish enough to get that low but keep an eye on it.
Lower down then the next daily support is at the 7500 level but it would take some bad news to get that low today.
Resistance wise, then the 7636 level is the major one, with R1 here along with the Hull MA on the 2h. That would also be the first test of that since it’s gone bearish so should in theory get a reaction.
The bulls though would be keen to break above that, and if the S&P500 gets bullish that may help them do so. In which case the next upside level is 7662 for R2 and then 7699 for the daily resistance at the round number. Might be a big ask to add that much today but I am favouring a bullish session today (cautiously though!).
Talking of the S&P500, they need to defend the 4280 level to get the bullish vibe going today, and if they manage that then we may well crack 4300. 4307 is R1 and a test of that would be good, with potentially a push towards 4320. The Raff channels on the S&P500 continue to head upwards as well.
Good luck today and have a great weekend!
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