US Record highs but FTSE lagging | Defend 7000 | 6983 6955 support | 7005 7020 7053 resistance

US Record highs but FTSE lagging | Defend 7000 | 6983 6955 support | 7005 7020 7053 resistance

FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

FTSE 100 live outlook prediction analysis for 26th July 2021

The bulls managed to defend the 7000 level on Friday though we are back hovering just below as I write this. We may well see a dip and rise today as the 2h chart remain bullish for the moment with 7000 and then 6957 support. We also have the FOMC on Wednesday (again!?!) and could well see some strength ahead of that (buy the rumour sell the news).

6964 is also the key fib for today and with S2 at 6944 I would like to see this 6950 area hold. That may well tie in with a dip and rise on the S&P which could do with a bit of consolidation/pull back to unwind a slightly overheated RSI on the shorter timeframes, following Fridays move to 4416. The bulls will certainly be keen to build on that push up though and 4423 R1 looks possible today. Bull Monday and all! They will need to defend the 2h support from the Hull MA at 4379 though otherwise the coral is probably going to be tested at 4347.

For the FTSE today we have initial support from the 200ema at 6989 and we may well see this initially, for a test of the 25ema on the 30m at 7010 which also ties in with the daily pivot. Above this then 7022 is the still green 30min coral and then the daily resistance level of 7043 that nearly got tested on Friday. Should the FTSE100 get this high then a short here is also worth a go. Above the 7045 level then 7051 is the R1 and key fib, so stops just above this, with 7080 and 7139 the next key levels above this.

For the bears, they will be looking to break 6990 initially, and then S1 just below at 6983. A drop down to that 6950 area would likely play out though on an S1 break, as we have the key fib at 6964, then S2 at 6944, with 6957 being the 2h green coral and the first test since it changed to a bullish trend on that timeframe. Ergo I would like to see this level hold.

So thinking a dip and rise for a bit of a bull Monday to kick in and want to see 6950 hold, and 4380 on the S&P. The bulls are on the back foot but not out of the game at the moment. Though we are now in the weaker summer trading period. Good luck today.

Asian Session

Asian stocks fell Monday as Beijing’s widening technology-sector crackdown hurt Hong Kong and Chinese equities, overshadowing a rally in U.S. shares to an all-time high last week on robust corporate earnings.

A Hong Kong gauge of tech firms tumbled more than 5%, the city’s main market slid and Chinese equities retreated. The latest move by officials is a reform of China’s $100 billion education tech industry, a step that roiled a slew of firms and stirred questions about what the nation’s regulators may do next.

Japanese shares bucked the sour mood, rising after a two-day holiday. U.S. equity contracts slipped following a record Wall Street close Friday, with the S&P 500 almost doubling from the depths of the pandemic. About 87% of the S&P 500 firms reporting results so far this season have beaten estimates.

Treasuries pushed higher, and traders are braced for possible turbulence from a Fed meeting this week where officials are due to discuss when and how to taper stimulus. Treasury market volatility has jumped on economic risks from the spread of the delta variant of Covid-19. The Japanese yen outperformed in the Group-of-10 currencies amid a mood of caution.

Investors have taken heart from a spectacular U.S. earnings season but concerns about inflation, the delta strain and China’s tech broadside linger. The outlook for the Fed’s $120 billion in monthly bond purchases also remains key: economists surveyed by Bloomberg expect the central bank to start scaling back asset purchases next year and to raise interest rates at a quicker pace through 2024 than previously thought. [Bloomberg]

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