FTSE 100 live outlook prediction analysis for 17th November 2020
The FTSE 100 index closed up 104.9p, or 1.66pc, to 6421.29 – its highest level since June 8. It jumped after US biotech firm Moderna said its vaccine was 94.5pc effective in preventing coronavirus. Europe was in on the trend. Here are the continent’s key market moves:
- Germany’s DAX: +0.47pc to 13,138.61
- France’s Cac 40: +1.7pc to 5,471.48
- Italy’s FTSE MIB: +1.98pc to 21,317.01
The main highlights from yesterday:
- Stocks soar after Moderna says vaccine 94.5pc effective
- Aviation and hospitality stocks lead FTSE higher
- Retail footfall ‘resilient’ despite restrictions
- Sterling dips as Brexit crunch week begins
- Asian stocks climb on new regional trade deal
- Japanese economy grows 21.6pc in third quarter
Moderna Delivers
Moderna said its Covid-19 vaccine was 94.5% effective in a preliminary analysis of a large late-stage clinical trial. Company shares rose as much as 15% in New York. The highly positive readout comes just a week after a similar shot developed by Pfizer and BioNTech SE was found to be more than 90% effective in an interim analysis. Both shots rely on a technology called messenger RNA; here’s how they stack up against each other. If Covid-19 vaccines do become widely distributed and help to revive global trade, the dollar may drop as much as 20% in 2021, Citigroup says.
Markets Lift
Asian stocks looked set for gains Tuesday after a positive vaccine update sent U.S. equities tied to an economic reopening higher while defensive tech shares lagged. The dollar fell. The S&P 500 closed at an all-time high after the Moderna news. Stocks poised to benefit from a reopening, such as cruise lines and air carriers, were among the best performers. Futures gained in Japan and Hong Kong. Benchmark Treasury yields ticked back above 0.90% and oil jumped. Elsewhere, Australia’s stock exchange is expected to open after it was closed for most of Monday’s session because of a software issue.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Investors continued to rotate into stocks more sensitive to economic growth Tuesday as they weighed renewed optimism about a Covid-19 vaccine against the coronavirus’s continued spread. The dollar extended a decline.
While most Asian benchmarks were little changed, energy and financial stocks pushed higher, and health care and communication shares lagged. U.S. futures retreated after the S&P 500 closed at an all-time high as Moderna Inc.’s vaccine was shown to be 94.5% effective. Stocks poised to benefit from a reopening, such as cruise lines and air carriers, were among the day’s best performers on Wall Street. European futures slid.
Elsewhere, Tesla Inc. shares jumped more than 10% in after-hours trading after an announcement that Elon Musk’s carmaker will join the S&P 500 Index on Dec. 21. Benchmark Treasury yields pushed back above 0.90%. Oil advanced above $41 a barrel. The pound ticked higher on optimism over a Brexit deal.
The bulls spiked it through that 6410 resistance level yesterday on the Moderna news, and it was a bit annoying that the low was only 6330, and missed the 6320 long order. However, we got a decent bull Monday and as such we could well be on for the bear Tuesday today. The 2 hour chart has gone bearish again following the drop off the 6460 level, and has resistance at 6428 to start with today. As such I think a short here is worth a go initially, especially if we get an initial climb this morning.
The S&P seems to be consolidating at the moment ready for a push higher and the FTSE could probably do with also doing that. If the S&P can hold the 3599, and possibly as low as 3588, then we should get another leg higher towards 3700. Initially the 30m chart is bearish with resistance at 3616 so the bulls will need to break above that.
Back to the FTSE and above the 6428 level then R1 at 6480 would be the next target for the bulls with the daily resistance level of 6505 above that.
For the bears, they will be looking to break the 6400 level initially, as we have daily support and technically speaking yesterdays resistance level here, for a drop down to the key fib level at 6366. Below that then S1 is at 6346 and could be seen today if the US starts to drop off as well. We are though sat on the green 2hr coral as I write this at 6405 which should hold as initial support. Below that then the 200ema at 6325 would be worth a long if we got that low.
Bigger time frames have some decent supports lower down – 6212 200ema daily, 6044 25ema daily and 5851 daily coral, so we need to keep an eye out for these over the next few weeks.
So, looking at 6428, 6480 and 6506 as resistance, 6400, 6366, 6346 and 6325 as the main support levels. Good luck today.
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