FTSE 100 live outlook prediction analysis for 14th April 2020
On Thursday, the FTSE 100 climbed 2.81pc to 5,837.09 while the FTSE 250 ended 2.92pc higher to 16,325.64 as Covid-19 appears to be reaching its peak.
Donald Trump has claimed that Opec+ is looking to double oil production cuts to 20 million barrels a day as a landmark deal promising record curbs failed to boost prices. Brent crude fluctuated in choppy trading despite a deal between the oil cartel and the world’s biggest producers to slash output by 9.7 million barrels per day as global demand collapses. Analysts warned the agreed cuts will not be enough to stabilise the market, but prices edged away from intraday lows as the US president said Opec+ is considering bigger curbs. “The number that OPEC+ is looking to cut is 20 million barrels a day, not the 10 million that is generally being reported,” Mr Trump said on Twitter. A cut that deep and a global economic recovery would help the energy sector bounce back “far faster than currently anticipated”, he predicted.
The National Institute of Economic and Social Research estimates UK GDP could fall by as much as 25pc in the second quarter as the virus-induced lockdown continues. Meanwhile, after another batch of poor jobs data on Thursday, the Federal Reserve has rolled out $2.3tn in loans to backstop ‘Main Street’ and local governments during the crisis.
Virus Update
States on both U.S. coasts formed coalitions to plan for coordinated reopenings of their economies after President Donald Trump insisted he would have the final say on when the country would reopen. President Emmanuel Macron of France extended the nation’s lockdown to May 11, and the U.K. is also planning to extend its own lockdown this week, according to Foreign Secretary Dominic Raab as he said that he expected the daily rate of deaths to continue to rise. Elsewhere, doctors in India are coming under attack as stigma surrounding the virus there grows, and thousands of passengers stuck on the “cruise to nowhere” spent Easter confined to the ship. On the vaccine front, progress is occurring at unprecedented speed, with 70 of them currently in development — three of which are being tested in human trials, the World Health Organization said. The head of the agency said it has a “very good” relationship with Trump, who has threatened to cut off funding to the group. Global cases reached 1.9 million, and deaths topped 118,000.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Global stocks pushed higher Tuesday ahead of one of the most uncertain earnings seasons on record as the coronavirus pandemic rattles the world economy. The dollar retreated.
Stocks climbed across Asia with benchmarks in South Korea and Japan pacing gains. U.S. futures rose after the S&P 500 Index retreated overnight and European contracts pointed higher.
The FTSE 100 was closed yesterday but we have seen a decent rise in futures prices so far since Thursdays close, and gold has broken above $1700 also. Gold looks to be on track to test the $1800 level soon. For the FTSE today I am expecting an initial dip from the 5940 level where are as I write this towards the 5883 2 hour support level. If that holds then we should see a rise back up, possibly to test the R3 level at 6000. That will give the markets a sense of relief to recapture that level, but the question will be if they can hold onto it. Just above that R3 level we have the steadily declining daily coral line, which has not been tested since turning red, and as such offers decent resistance. Its at 6035 for the moment but dropping off, so should the FTSE 100 reach this are then a short here looks like it is worth a go.
Should the bulls really go for it over the next few sessions then the top of the 10 day Raff channel is at 6264 for the moment, and a rise to here may well play out, as long as the bulls keep the momentum up. We are playing out a V shaped recovery in the markets so far but are also nearing some key resistance levels.
The S&P looks to be pushing for its next major resistance level at 2850 and that may well tie in with the FTSE hitting that 6000 area. Above 2850 then 2945 is the 200ema on the daily and the bulls will likely encounter strong resistance here or just below (2930 maybe?). However, its also just testing the daily coral here at 2805 so we may see an initial dip down from this area first thing.
Should the bears break below 5870 today then the daily pivot at 5855 and then the fib level and S1 at 5820 is likely to be seen. We also have the 2 hour support at 5800. We would also have a gap close with Thursdays closing price (5837) on such a drop and ergo may see the bulls defend this area.
Good luck for today.
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