FTSE 100 live outlook prediction analysis for 24th March 2020
The FTSE 100 and 250 tracked each other closely on another rough day for markets, with major indices sinking across Europe as investors await clarity on what action the US government will take to support workers and consumers during the coronavirus crisis. Both indices dropped 3.8pc, with the FTSE 100 hitting its lowest close since October 2011. Nearly all London’s blue-chip stocks lost ground, with asset managers Hargreaves Lansdown, St James’s Place and Legal & General among the hardest-hit groups as multiple British firms shelved reporting plans and scrapped their dividends.
Royal Dutch Shell provided the biggest lift to the blue-chip index, with its “A” shares gaining more than 6pc after it announced cost-saving measures, putting a measure of upwards drag on a miserable-looking index. The FTSE 100 is down about 35pc from its most recent highs – putting it deep in bear market territory.
A volatile pound appeared to offer little support to the top index – despite sterling dipping close to the multi-decade lows it hit last week, nearly all of London’s listed materials firms lost ground during the day.
Lockdown
The U.K. will go into full lockdown from Monday night after Johnson ordered people stay home “at this moment of national emergency.” The prime minister approved a radical ban on all unnecessary movement of people for at least three weeks. Police will break up gatherings and have the power to fine individuals who defy the tough new laws. The U.K. joins most parts of Europe, including France, Germany and Italy, by rolling out much stricter social distancing measures.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
And the lock down begins in the UK today. Overnight we have seen a decent rise on the FTSE futures, and we have just retested the 5200 resistance level from yesterday. With the 4950 level holding well yesterday, we have now got slightly more bullish looking charts and the 2 hour is showing moving average support at the 5031 level. This, combined with the daily pivot at 5021 and the 30min coral at the same level, suggests that a dip to this area is worth a long for another assault on the 5200 and higher levels.
The S&P defended the 2200 level yesterday and has now got 2257 showing as decent support on the 2 hour. A rise towards the 2390 10 day Raff channel and 2450 20 day channel could well play out if the bulls step up. We spiked to the 2395 level on the Fed news yesterday so thats the immediate resistance level that the bulls will need to break.
Back to the FTSE and should the bears break through 5000 then a drop back down towards 4790 looks like I will play out, assuming that we get a break of yesterday’s 4950 level which held well.
Should the bulls break above the 5262 level then I am looking at a rise towards the top of the Raff channels at 5375.
Things remain volatile but let’s see if we get a dip and rise play out today. Stay safe!
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