How to start trading - FTSE 100 prediction and analysis for today 7th July 2023
How to start trading - The FTSE has 100 suffered its largest drop in eight months amid fears of rising interest rates. The UK’s blue-chip index ended trading 2.17pc down at 7,280.50, its lowest level since November 3. Nearly all stocks on the FTSE 100 sank on Thursday, with the internationally-focused index recording its worst intraday drop since the US regional banking crisis sparked a brutal selloff in March.
Asian stocks slid on Friday to cap a torrid first week of the quarter for financial markets, with the dollar advancing and bonds crumbling as the resilience of U.S. jobs data has investors bracing for interest rates to head higher still. It comes after minutes from the US Federal Reserve’s June meeting revealed on Wednesday that “almost all” policymakers expected further monetary tightening, even as they agreed to pause rates.
FTSE 100 prediction to help you start trading
Today is of course NFP news day and the markets are running scared currently in the face of more rate rises (not really a surprise and I still think the BoE will be aiming for 6.5% in the fullness of time). The NFP forecast is for an additional 225k jobs versus the 339k previously, while the unemployment rate may well have dropped to 3.6% based on forecasts. That news is out at 1330 so expect some volatility then.
Initially today we may well see a bit more of a slide down to the 7210 area where we have S1 and a false break below the Raff channels which are both at 7255. With the S&P500 holding its low yesterday and a decent bounce from the 4380 level we may well see some more buying start to kick in, especially as the media is quite doom laden once again (always a good contrarian indicator).
Below the 7200 level though and the bears will be looking for 7151 S2 and that really would end the week quite bearishly, especially as we were at 7600 on Monday!
The 2h chart is negative still with the red coral now at the 7460 area and 7380 for the Hull MA. That said, there is lower resistance from the daily pivot at the 7332 level. If the bulls were able to take it to there then we may well see the rise falter here. 7378 is also the key fib, with the 30m 200ema at 7418. There are a few levels in play and to keep an eye on today.
It will be interesting to see if we get the usual Friday bullishness on the S&P500 today, and a lot will of course depend on the NFP news. A dip and rise may well play out today.
Good luck and have a great weekend.
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