FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 rose yesterday on the back of gains in banks, but shares of utilities slumped after Rishi Sunak announced a 25pc windfall tax on oil and gas producers’ profits. The blue-chip index was up 0.6% to 7,564.
Shares of power generators Drax, Centrica and SSE were in the red, while oil majors BP and Shell, which are less affected by UK policy, were up more than 1pc.
Stocks in Asia were buoyed Friday by better-than-expected earnings at Chinese technology companies. The dollar dropped.
An MSCI Inc. gauge of Asia-Pacific shares gained for the first day in four and was on track for its second weekly advance. Alibaba Group Holding Ltd. and Baidu Inc. beat sales forecasts, underpinning a rally in Hong Kong, while Japan also climbed. US and European futures wavered. Shares climbed on Wall Street Thursday on signs consumers remain resilient despite inflationary pressures.
BP last night became the first major energy company to declare it would review investments in light of the Government’s new windfall tax.
The FTSE 100 oil and gas producer said the tax was a “multi-year” proposal and it would need to “look at the impact” on its North Sea investment plants.
Putin’s Offer
Russian President Vladimir Putin said he’s willing to facilitate grain and fertilizer exports as global concern mounts about food shortages and rising prices — but only if sanctions on his country are lifted. Putin told Italian Prime Minister Mario Draghi Moscow is “willing to make a significant contribution to overcoming the food crisis” on the condition that the “politically-motivated restrictions” are lifted. The U.S. and its allies would be highly unlikely to agree to remove the extensive sanctions placed on Russia for its actions in Ukraine. Putin’s comments come days after European leaders slammed the Russian leader for weaponizing food. All eyes will now be on whether Russia can sidestep its first foreign default in a century, with $100 million in interest on debt due to reach investors by Friday.
FTSE 100 live outlook prediction analysis for 27th May 2022
It could be an interesting end to the week as we have a very short week next week – the US is closed Monday for Memorial Day, while the UK is closed Thursday and Friday for the Jubilee celebrations. As such we could see a pretty muted week next week, but a more optimistic day today ahead of that. The bulls have fought valiantly this week, with the S&P pushing past the 4040 resistance yesterday and on track to test the 4100 level where we have the top of the 20d Raff.
For the FTSE today, we may well see the bulls defend the overnight low at 7540 initially for a rise towards the 7575 resistance level that is in play to start with. The 2h chart has gone weakly bearish to start with and the Hull MA is also at this level. There is still a chance for a drop down to test the 25ema daily support at 7460 in play, though we may not see that today as its looking quite positive.
Above the 7575 level then the bulls next target is 7600 where we have the key fib and just above R1, then the daily level at 7625 we have been keep an eye out for all week.
For the bears, they will be looking for an early break to target the 7510 level where we have the 200ema on the 30m and 7501 for the key fib. S1 is at 7515 so we should see this level hold. The ASX200 bought its dip and we may well see the FTSE100 do the same.
That said, as its Friday it’s a good day to be a bit more cautious, even more so in light of the reduced week next week.
S&P500
Bulls holding on, and we may well see the 4031 daily pivot get defended this morning. Below this then the 4004 level is the key fib, with 3985 below that. S1 and the 30m 200ema here. We are also getting near to the top of the 20d Raff channel at 4099 and with R1 also here we could see a rise falter here.
Dax40
Looks bullish on the 2h chart so buying the dip down towards the 14100 level looks like a decent play for today. We also have the 30m 200ema and the key fib here so should it get that low then a bounce here would fit well. The bulls need to break 14300 though as key fib resistance here – above then R1 14377 should be achievable.
Good luck today and have a great weekend!
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