FTSE 100 Analysis | Trading Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
- FTSE 100 dips 0.09pc Tuesday; Wall Street falters after inflation data
Stocks and equity futures fell Wednesday as Chinese data fueled concerns about inflationary pressures in the global economy. Treasury yields climbed ahead of a report on U.S. consumer prices.
Shares fell in Japan, Hong Kong and China, where factory-gate prices grew at the fastest pace in 26 years and consumer-price inflation topped estimates. China’s property sector also continues to damp sentiment: developer Fantasia Holdings Group Co. plunged after resuming trading, while indebted China Evergrande Group faces its biggest payment test on a clutch of dollar bonds.
U.S. and European futures retreated after the S&P 500 declined for the first time in nine sessions, hurt by financial shares. The Nasdaq 100 underperformed, in part on Tesla Inc.’s loss of $199 billion in value on a host of negative news.
FTSE 100 live outlook prediction analysis for 10th November 2021
Cheeky stop hunts yesterday on the S&P500 and the FTSE100 shorts prior to a decent drop as the seasonality plays out and we have a couple of weeks of a slightly more bearish market. Should reset the overbought nicely though for a year end rally. Initial resistance this morning on the fTSE100 is at the daily pivot and 200ema line, which we have now moved below, at 7285 so we may well see the bears have another crack here for a push down to the daily support at the 7235 level.
7235 sees S2 and also the key fib, and is just above the 10 day Raff channel bottom at 7220 so it would be good for the bulls to defend this level for a possible bounce. That may well tie in nicely with the daily support on the S&P500 at the 4650 area as well, an area that the US bulls will be keen to defend as a break of that will likely lead down to the bottom of the 20 day Raff channel at the 4620 level.
Above the 7285 level then the bulls would push for a test and break of the 7300 level again though we have R1 at 7302, along with the 2h resistance here again. Should they break that though then 7330 (R2 and key fib) and the daily at 7365 area the next key levels of note. Not sure they will manage a push towards 7365 today though!
For the bears they will be looking to build on this weakness creeping in and break it below the 7235 level as that will lead to a test of the 7200 and also the bottom of the 20 day Raff channel here.
S3 for today is at 7209 and whilst we could get that low I am expecting the bulls to defend that 7235 level.
Looking ahead to the news for today, highlights include US CPI, Initial Jobless Claims, DoEs, ECB’s Elderson, supply from the UK, Germany & the US.
So yesterday we got the rise and dip play out nicely, today looks like it may well be more of a dip and rise. Shorting the rallies for the next couple of weeks may well start to become the preferred play as well.
Good luck today.
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