NFP 160k forecast | 7460 7446 7436 support | 7510 7567 resistance | bear Friday

NFP 160k forecast | 7460 7446 7436 support | 7510 7567 resistance | bear Friday

FTSE 100 live outlook prediction analysis for 7th February 2020

Global markets continued on an upward trajectory on a cocktail of positive macro factors. London’s benchmark index made minor gains, despite support from a weakening pound, which fell to its lowest level since Christmas day.

  • US market grab only small gains, after week of chunky gains
  • European markets climb to record levels after China cuts tariffs
  • Beijing moves to lower levies as part of trade deal as it fights coronavirus outbreak at home

The FTSE 100 has closed 0.30pc higher at 7,504.79 while the FTSE 250 climbed 0.25pc to 21,572.86. In the eurozone the German Dax and the French CAC closed 0.72pc and 0.88pc respectively.

Markets Mixed

Asian stocks were set for a mixed session Friday, amid record highs for European and U.S. shares, as investors mulled the impact of the spreading coronavirus and awaited the latest data on the American economy. The dollar climbed. Futures were flat in Japan and dipped in Hong Kong. The S&P 500 Index posted modest gains to extend the week’s rally amid strong corporate results. Treasuries were steady ahead of Friday’s U.S. labor market report. Gold edged higher and the yen dipped. Oil advanced for a second day on hopes that OPEC and its allies would further curb oil production.

FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

Todays main event is of course the NFP data out at 1330 with a forecast of 160k. Will we see a buy the rumour, sell the news day playing out? The ASX had a dip and rise session Friday, as Asia as a whole retreated during Friday’s session. Overnight the FTSE100 has remained around the 7500 level consolidating the recent gains from 7230. Cable fell yesterday below the 130 level which helped to support the rise in the FTSE.

For today the bulls need to break the 7534 level which we dropped off yesterday and if they were to do so then a rise towards R3 at 7597 could well play out. We also have the top of the Raff channels at the 7600 level now and as such we may well see a stutter at this area should we get that high today. Both Raff channels are heading downward at the moment which is bearish, but the 2hour coral remains green which is a bullish trend on that time frame. So we could get a short term rise to the top of the Raff channels. Resistance in between those two areas is at 7567 where we have the key fib and also R2 (R1 is at 7543 so just above yesterdays high).

On the support side of things should the bears break below the 7500 level this morning then a drop down to 7465 looks possible and we have the 200ema on the 30min here along with a key fib and S2 for today. S1 is at 7490 which has held several tests overnight. Below this that 2 hour coral at 7436 would probably get tested.

The S&P Raff channel tops are at 3372 – 3380 for today and a rise to this area then a drop would make sense. That may also tally with the FTSE rising to the 7600 area to test the top of its Raff channels and then a drop from there. Overall the sentiment has changed to a bullish one again though (how quickly it changes in a week!). The slight flaw in the plan for a rise to here though is that the bulls will need to really pull it out the bag today to add 100 (possibly 130 if we drop to 7470) which may be a bit of a big ask on a Friday. We shall see.

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