FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 ended at a more than one-week high Monday, as an easing of Covid restrictions in China and the prospect of global infrastructure funding brought relief to commodity prices, lifting shares of major oil and mining companies. The commodity-heavy FTSE 100 rose 0.7%, hitting its highest closing level since June 16 at 7,258.
However, stocks struggled for traction in Asia on Tuesday as a global bounce from a bear market stalled amid ongoing worries about high inflation and slowing economic growth.
An Asian equity index fell for the first session in four. Chinese tech shares were among the weaker performers on concerns that investors may look to take profits after a strong rally.
Oil continued to rise with investors still weighing worries over an economic slowdown against concern over lost Russian supply amid sanctions related to the conflict in Ukraine.
Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.7%. The index is down 3.8% so far this month. U.S. stock futures, the S&P 500 e-minis, were up 0.27%.
- Australian shares were up 0.25%, while Japan’s Nikkei stock index rose 0.5%.
- China’s blue-chip CSI300 index was 0.4% lower in early trade. Hong Kong’s Hang Seng index opened down 0.36%.
On Monday, U.S. stocks ended a volatile trading session slightly lower with few catalysts to sway investor sentiment as they approach the half-way point of a year in which the equity markets have been slammed by heightened inflation worries and tightening Fed policy.
The major U.S. stock indexes lost ground after oscillating earlier in the session, with weakness in interest rate sensitive megacaps such as Amazon.com Inc, Microsoft Corp and Alphabet Inc providing the heaviest drag.
The Dow Jones Industrial Average fell 0.2%, the S&P 500 lost 0.30% and the Nasdaq Composite dropped 0.72%.
Oil prices rose as the Group of Seven nations promised to tighten the squeeze on Russia’s finances with new sanctions that include a plan to cap the price of Russian oil. U.S. crude ticked up 0.99% to $110.65 a barrel. Brent crude rose to $116.22 per barrel.
Treasury yields climbed on Monday following capital and durable goods orders data and as pending home sales surprised to the upside from the previous month.
FTSE 100 live outlook prediction analysis for 28th June 2022
A decent bull Monday yesterday and the bulls have managed to defend overnight as well which bodes well for a rise and dip day today, with a possible bear Tuesday kicking in later.
A rise towards the 7325 resistance level would fit pretty well today and keep the 2h chart bullish. We are however just above to test the bearish 25ema daily resistance level at 7295 as I write this so it will be interesting to see if we get a reaction here initially. 7325 is also the 200ema on the daily and the first test of it since we crossed below that key line on the 10th June.
Above 7325 then the bulls will be aiming for the 7366 R3 level and then 7445 where we have the daily coral. The recent move above 7200 bodes well for more bullish strength to come though, and we have certainly pulled away from 7000 again.
For the bears, a move down to the daily pivot at 7249 is on the cards if they can get a reaction at either the 7300 or 7330 levels. Below that then they will be looking to 7205 where we have the key fib and possibly 7175 where we have the 30m 200ema. S1 is at 7213 for today as well. 7200 is the current Hull MA on the 2h also, so in theory a dip down to here does fit the charts pretty well. Watching that 7250 area though for the initial reaction today.
S&P500
The bulls will be keen to keep the price above 3900, though its just nudging a possible move below the Hull MA on the 2h here, and a break of that may well lead to a test of the green 2h coral at 3845ish. Initial resistance is with the red 30m coral at 3925, then R1 and the key fib at 3935. Initial support is at 3881, with that 3845 below that. Again a rise and dip would fit well, though we could see the bulls reappear this afternoon, if those support levels hold.
So, half expecting a bear Tuesday though it does look like we will get an initial rise across the board. Markets are probably breathing sigh of relief that they aren’t simply tanking!
Good luck today.
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