FTSE 100 Analysis | Trading Signals | Forecast | Prediction | FTSE 100 Outlook
Asian stocks climbed Monday, helped by rallies in Japan and Chinese technology shares, while crude oil surged past $80 a barrel amid a global energy crunch.
The US added fewer jobs than forecast for the second month in a row in September, casting doubts over the labour market’s recovery. Nonfarm payrolls increased 194,000 last month after an upwardly revised 366,000 gain in August, a Labor Department report showed. This was well below the 500,000 rise forecast by a Bloomberg survey of economists. The unemployment rate fell to 4.8pc, while average hourly earnings jumped. The disappointing figures will cast a shadow over recovery hopes and complicate a decision by the Federal Reserve on scaling back stimulus measures before the end of the year.
FTSE 100 live outlook prediction analysis for 11th October 2021
Since that stop hunting fake break down to 6950 on Wednesday it’s looking a bit more bullish for the FTSE 100, and as mentioned previously I am still expecting a decent end to the year. However, we could still have one more sell off this month so bear that in mind!
The S&P struggled at the 4430 level as expected so this is the level that the bulls will need to break and if they do so then it should pull the FTSE100 up with it. With the recent strength the FTSE100 daily chart has gone bullish and we have ema support at 7070 for today, and in fact we had a drop down to that overnight and a subsequent bounce. Any retest of that level today will likely see another bounce.
7060 is also the 2h coral and has now gone green (shows an uptrend) while the 7077 level is the Hull moving average. The daily chart Raff channels are heading up as well, with the 10 day channel top at 7210 and looking like it might be seen soon. We could though see a drop again from here to set up the year end climb. The top of the 20d S&P Raff channel is at 4455 so we could well see any rise stutter here.
Initial resistance is at the 7116 level with R1 here, and also just above Fridays high, so we could see a small dip of this for a dip and rise to play out today. The bulls will be aiming for the R2 level at 7137, while daily resistance at 7145 is also in this area. Not sure that we will get much higher than that today, despite a bull Monday, what with the negative sentiment around at the moment.
For the bears they will be looking to break that 7070 overnight support level that held, as that will likely allow them to take it down to 7035. Decent support here being daily and the key fib, so if seen then worth a long here as well. Below that then S3 is at 7019 and then of course the round number at 7000. That’s also just above the 10d Raff channel bottom at 6953 for today, but I dont think we will get that bearish today.
Goldman Sachs economists cut their forecasts for U.S. growth this year and next, blaming a delayed recovery in consumer spending. Goldman’s team said they now expect growth of 5.6% on an annual basis in 2021, versus their previous estimate of 5.7%, and 4% next year, down from an earlier forecast of 4.4%. Usually a good sign to expect the opposite – if they are trying to spook investors it probably means they expect markets to rise!
So, looking at a rise and dip to play out today with 7110 and 7145 resistance, 7070 7035 support. Good luck today and hopefully the key levels section is useful with the additional markets. Good luck today.
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″]