FTSE 100 outlook and analysis for 7th November 2019
It was a mixed day for markets yesterday, with the FTSE 100 eking out a forth successive session of gains against a flat pound. The bulls failed to break above 7400, while the bears couldn’t get down lower than 7363. A pretty small range for the day.
The signing of the somewhat elusive partial trade deal between the U.S. and China just got more precarious. President Donald Trump and Chinese President Xi Jinping may not be able to officially ratify it until December, according to a person familiar with the matter. What’s more, two U.S. locations have been ruled out for their highly anticipated meeting, they said. The two sides have been trying to agree on a limited trade deal that would entail the U.S. dropping some tariffs on Chinese imports in exchange for Beijing resuming purchases of American farm goods and other products, as a means of resolving the trade war ahead of the 2020 U.S. elections. But the scheduled signing at an international summit in Chile this month was canceled because of unrelated protests in the capital, Santiago.
Asian stocks are poised to open mixed Thursday following reports of a potential delay to the signing of a partial U.S.-China trade deal. Treasuries rebounded after dropping for three days, while futures were lower on Japanese and Hong Kong equities and higher on Australian stocks. The S&P 500 Index closed little changed Wednesday. Shares in energy companies declined alongside West Texas crude, which slumped after a report that the biggest producers in OPEC+ aren’t pushing for deeper oil-supply cuts when the group meets next month. The yen rose, as did gold.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
7400 remained as resistance yesterday however if the bulls break through that then we should get to the 7420 level fatly easily. We then start to get into a decent resistance zone between this and 7440, the latter being a decent gap fill area, and with the fib at 7432 we may well see a pull back from this area to drop down and test the daily pivot at 7382 and the cam break out at 7377. I am thinking that we follow the ASX200 lead and have a bullish day, as the bears failed to do anything from 7400 yesterday and the trends are still up, despite the fear/greed indicator running hot at 88/100 still.
If the bulls were to break above the 7440 level then a trip to the top of the Raff channels at the 7500 area is more than likely, so worth longing a break of that resistance zone.
If the bears do manage another dip initially off the 7400 level then we should get the pivot and I am thinking that will hold. However, if it were to break then 7362 is next up as we have the rising 200ema here on the 30min and also the 2 hour coral trend line at 7372 which we haven’t tested as yet since it went green. As such I think a long here is worth a go.
Today at midday we have the BOE rate decision, expected to remain unchanged. US Jobs data at 13:30 is also worth keeping an eye on. Other news highlights include German Industrial Output, Chinese FX Reserves, US Initial Jobless Claims and Consumer Credit, BoE Rate Decision, MPR & Press Conference with Governor Carney, Riksbank’s Skingsley, Fed’s Kaplan, ECB’s Lagarde, supply from the US and France.
So, watching 7400 resistance initially with 7420 and 7440 above that. 7380 for support, with 7337 possible below that but don’t expect us to get that low today.
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