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FTSE100 live outlook prediction analysis for 20th October 2022
Chaotic scenes in Westminster as the government implodes but at least the FTSE100 has held on just about. Cable is still hovering about at 11200 and the bulls are hanging in there on that too. After the strong rise to start the week on the S&P has consolidated a bit, probably coiling ready for another leg up. Interestingly the Dax daily chart has chart gone bullish (the only one so far to do so) so we could start to see some more strength coming in.
The S&P500 bulls will need to break above 3735 where we have 2h Hull MA resistance, and the FTSE100 bulls need to break above 6960 which is also the 2h resistance on that.
Initially today we could see a dip down to the overnight lows and also the key fib at the 6881 level, as overnight we have bounced up to the daily pivot at the 6935 level which is going to act as resistance to start with.
Above 6935 then the bulls will be aiming for 7000 again, but we have R1 and the key fib in the way at the 6980 level. As such we could see a stutter here, if they manage to push past that 2h resistance level at 6960. A overshoot of the 2h resistance to R1/fib would make sense before a dip off that.
For the bears, then obviously a break of the overnight low at the 6890 is what they are aiming for, along with the key fib support at the 6881 level. S1 is at 6870, so we do have a cluster of supports in this area, so a break of this area will be quite bearish. 6824 is S2 so the likely next target for the bears. However, the Raff channels are starting to level off a bit more now, and in fact the 10d Raff channel for the S&P is heading up now. It does therefore feel like we might be bottoming out and a bit of stabilisation is in progress. Bit more buy the dip coming to the fore now too.
S&P500
Again, a small dip down to the overnight low to start with and I am looking to see if that holds and also the key fib at the 3672 level which would set up a possible bounce to the 3737 level and a test of the 2h resistance. Above that then we may well be on for a test of the 3801 R2 level though that feels a bit of a big ask for today. Earnings are generally coming in ok at the moment which is helping with that stabilisation!
Good luck today.
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