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FTSE100 live outlook prediction analysis for 9th January 2023
Asian stocks are set to enter a bull market after US equities had their best day in more than a month on Friday, driven by China’s reopening trade and expectations of slower rate hikes.
The MSCI Asia Pacific Index rose 1.7% on Monday as stocks from Sydney to Hong Kong rallied, tracking a more than 2% Friday gain in the S&P 500. The Asia-wide gauge is on track to climb 20% from its October low, with the gains driven by Chinese stocks after the nation pivoted on its Covid strategy and offered more policy support for economy and developers.
The S&P500 fought back well on Friday and carried the FTSE100 up with it as we now head into earning season. 7800 is in the bull’s sights, as is a push higher still, however we have resistance at the 7750 level to start with today as we have R1 and the top of the 20d Raff channel here. As such we may well see a stutter here and a dip back down to the daily pivot at the 7700 round number level.
If the bulls can push past 7750 though then 7831 R3 is not totally out of the question for today and a strong bull Monday, though R2 is at 7777 so also keep an eye on this. However, we are looking like opening just on the key fib level at the 7720 and this level has held as resistance overnight as well.
I wouldn’t the surprised to see a dip and rise play out today.
Support wise, we have the 7692 level as mentioned, with the daily pivot here, and the 30m coral just above this at the 7705 level. S1 is at 7662 so if the bears manage to break 7700 then keep an eye out for that. The next major support is then down at 7620 where we have the key fib and the 200ema on the 30m chart, its possible that we could shed 100 points to get that low, however I think the current back drop is more positive still (chart speaking rather than the MSM!).
Both the Raff channels are heading up, however the S&P500 is heading for a test of the now red coral line on the daily chart at 3923 and with the top of the 10 day Raff channel also here, we may well see the bears have a go here.
Not too much more to say really, keep an eye on the key levels and trade the reactions. The markets are still pinning their hopes on less aggressive rate rises and there is even talk of cuts at the end of the year! Still think we are past peak inflation hence the flurry of strike action seen to get payrises locked in before inflation drops back to much (and rightly so!).
Good luck today.
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