FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
The FTSE 100 bounced back thanks to gains for energy and healthcare stocks, while Ladbrokes owner Entain topped the index following a takeover approach from DraftKings. The blue-chip index closed up 1pc and recorded its best session in two months. Oil majors BP and Royal Dutch Shell were among the top risers.
Entain jumped 18pc after it confirmed it had received a takeover offer from US betting firm DraftKings that could reportedly value the company at $20bn. B&Q owner Kingfisher was the biggest drag on the index, falling 4.9pc even after reporting a jump in half-year profit as investors worried about supply chain troubles.
The domestically-focused FTSE 250 rose 0.8pc, with travel stocks among the biggest gainers.
Oil fluctuated yesterday as investors adjusted their positions ahead of a crucial Federal Reserve meeting. Oil prices switched between losses and gains, though they trended marginally higher following a two-day losing streak.
The Fed meets today to determine the fate of stimulus measures. Officials are expected to hold interest rates near zero but set the groundwork for a tapering of the central bank’s bond buying programme.
Several small UK energy suppliers have stopped accepting new customers in a sign that Britain’s energy crisis is deepening. Igloo, Green and Ampower are all closed to new business, according to notices on the companies’ websites. Several energy suppliers have gone out of business already this year as gas and power prices surged to record highs. Business Secretary Kwasi Kwarteng has said the government is poised to step in to prop up the sector, including by lending money to bigger companies to help them take on customers from collapsed suppliers.
FTSE 100 live outlook prediction analysis for 22nd September 2021
Overnight futures are back above 7000 and the bears are on the back foot again. We have certainly pulled away from the 6840 support level now and the bulls are counting on a positive outcome from the Fed later as well. We may well get a dip and rise play out today as the S&P is just coming into its 2h resistance as I write this at 4369 – a dip from there down to the 4350 support level before then climbing would fit pretty well. 4402 is the 2h coral resistance so the first major test with 4430 R1 above that.
For the FTSE100 we are just on R1 resistance to start with at 7010 so a drop down from here initially would fit the bill. The first support is at the 25ema on the 30m at 6975 and we also have the 200ema here, along with the green 30m coral. As such I would like to see this level hold for a push back into the 7000’s, possibly a test of the 7060 R1 level. 7059 was also the daily resistance from Friday. 7061 would also be the second test of the daily 25ema – the line that we dropped off from on Friday albeit higher up at 7100.
Below the 6975 then the bears will be looking to retest the overnight lows at 6930, and 6908 where we have the key fib level for today. S1 isn’t until the 6896 level so a slide down there would be quite bearish. Whilst we may well still get one more big slide in September/early October I have a gut feeling that we will get a little push up first – maybe helped by the Fed later.
For the bulls, a break above the 7010 initial resistance level should see a rise towards that 7060. Above that then the bulls may well feel stronger (especially if helped by the Fed) and we may well see 7125 where we have R3, along with a test of the top of the Raff channels – 7090 for the 10d and 7125 for the 20day. This higher level looks like it will offer strong resistance though as we also have the daily coral here and red – for the first touch of that we should see the bears appear here. Worth shorting this level if seen today.
So, let’s see if a dip and rise plays out – the immediate threat of a worldwide meltdown in stocks has been averted and it may well just be put down to the usual September weakness. Good luck today.
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