FTSE 100 prediction 11th July 2023
Trading today - The FTSE 100 ended higher on Monday as gains in energy firms outpaced losses in mining stocks after weak Chinese economic data renewed slowing demand concerns. The blue-chip FTSE 100 gained 0.2%, while the more domestically focussed FTSE 250 midcap index added 0.1%.
Asian shares bounced and the safe-haven dollar edged lower on Tuesday as investors hoped this week’s U.S. inflation data supports an imminent end to rate hikes and cheered the prospect China will deliver economic stimulus to prop up stalling growth.
Markets are awaiting U.S. inflation data due Wednesday to see if price pressures are continuing to moderate, which could provide clues on the interest rate outlook.
FTSE 100 prediction
It feels like the bulls are fighting back a bit now ahead of the US inflation data tomorrow. The 4380 S&P500 level was defended well, and the FTSE 100 only dropped as low as the 7230 level yesterday before climbing back. 7215 is now the 2h Hull MA support level and buying the dips ahead of the news could well be the right play, especially if the S&P500 continues to push on.
Initially we may get a dip and rise play out today and as you can see from the charts and key levels table above there are some good levels to hold as support.
4400 on the S&P looks to be decent support should we drop that low, while the FTSE 7215 as mentioned, though above that the 7265 level looks to be fairly key to start with today.
We got the drop off the 7303 daily resistance yesterday though only for 40 or so points, which we have subsequently retraced half of. Shows that there is still decent buying pressure for the moment. That 7303 level is now the line in the sand for today that the bulls will need to break above today.
If they manage to do so then a rise toward the 7325 level where we have the 200ema, and an outside chance of 7360 which is the next daily resistance level of note. Might be a big ask to get that high today though CPI tomorrow may be the catalyst for the bulls to light the afterburners.
Support wise, below the daily pivot at 7267 then a drop down to the 7215 area could play out and a test of the key fib and the Hull MA. Below that then 7206 remains the bounce area on the daily and 7199 is the 20d Raff channel bottom - so decent support here.
Should we see this 7200 area then a long here is worth a go.
Good luck today.
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