FTSE 100 live outlook prediction analysis for 8th September 2020
With Wall Street closed for the Labor Day holiday, it was a quiet afternoon. Still, European markets have been soaring, with the FTSE having a particularly strong performance helped by the fall in cable.
Business groups that oversee trade between Northern Ireland and the rest of the UK have reacted with dismay following reports that the Government is planning to renege on commitments made to the EU as part of the Brexit Withdrawal Agreement.
The rebound in German factory output lost steam in July, suggesting Europe’s largest economy faces a slow return to pre-pandemic levels of activity.
The FTSE 100 jumped 2.4pc to 5,937.4, clawing back some of the ground it lost over several painful sessions last week. The index’s performance was boosted by a sharp fall in the value of the pound, which was rattled by reports that the Government may tear up part of the withdrawal agreement with the EU.
Gains were widespread, with housebuilders including Taylor Wimpey and Barratt rising alongside property portal Rightmove after Halifax said UK house prices had risen to an all-time high in August. Miners also performed well, with precious metal miners Fresnillo and Polymetal among the biggest risers, despite a slight dip in the price of gold.
China Card
President Donald Trump said he intends to curb the U.S. economic relationship with China, contrasting himself with Joe Biden by threatening to punish any American companies that create jobs overseas and to forbid those that do business in China from winning federal contracts. “We’ll manufacture our critical manufacturing supplies in the United States, we’ll create ‘made in America’ tax credits and bring our jobs back to the United States and we’ll impose tariffs on companies that desert America to create jobs in China and other countries,” Trump said at a White House news conference on Monday where he complained at length about his Democratic opponent. He did not say when he would implement the policies but framed the moves as part of a second-term agenda.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Gains in Asian stocks petered out Tuesday amid fresh Sino-American tensions and recent selloff in U.S. technology shares. The pound extended losses on concern the U.K. is inching closer to a no-deal Brexit.
Shares posted modest gains in Japan, Australia and South Korea. Hong Kong and Chinese stocks headed lower as President Donald Trump said he intends to curb the U.S. economic relationship with the country. Futures on the S&P 500 Index pointed higher, though pared gains, with those on the Nasdaq 100 down from Friday’s close. Europe’s Stoxx 600 rose Monday. Oil extended its retreat below $40 a barrel as a price cut by Saudi Arabia signaled fuel demand is wavering in key markets. The dollar was steady.
The strength has remained overnight and we are at the 5955 resistance level as I write this. We may get an opening dip but its very 50/50 from this resistance level down towards the 5900 support area where we have the daily pivot and the 200ema on the 30min. I am expecting a bit more bull today as the FTSE has its moment in the sun following weeks of sitting in the doldrums. We have popped above the 10 day Raff to start with as well today, so the 20 day looks likely to be tested, which is at 6023 for today, but we may get as high as 6047 R2 if we break above 6000.
The GBP/USD (cable) rate is obviously playing a big part in the FTSE moves at the moment as Brexit once again comes back to the fore. The S&P has defended the 3430 level overnight as well, and the bulls will be keen to use this as a spring board to reverse the declines and push higher. A break of this though and 3350 beckons. On the upside for the S&P 3530 once again, and then the top of the 10 day Raff is at 3600 and slowly rising so we may well see a decent climb on that as we get closer to the election in November.
For the FTSE, I am thinking that if we do get the opening dip then the 59000 level should hold, but below this the 2 hour chart has support at 5860 and the coral has also just gone green on this current 2 hour candle – lending weight to the support at 5860. If we get that low then a long here is worth a go. That said, I think the bulls will try and defend 5900 if we got down there.
So mildly optimistic for today and the US returns from their Labor Day holiday as well. Looking at 5960, 5995 and 6047 as the main resistance, 5905, 5860 as the main supports for a possible rise and dip to play out today. Good luck.
Recommended Broker
IC Markets – offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership and Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and webinar group membership for discussion and realtime trade updates
Keep up to date with new content, free sign up below
[yikes-mailchimp form=”4″]