FTSE 100 live outlook prediction analysis for 14th July 2020
That was a decent drop off the 6185 level yesterday, though to really get going it needed the help of the US, which saw the S&P fail to break above that 3230 resistance area before a slide back to the main support at 3170 after the European close. Overnight we have remained just below this, and also at the 6100 level on the FTSE. Fears above the rising number of cases and general sentiment weighed heavy after initially looking quite positive following a strong start to the Asian markets on Monday.
European stock markets were well over 1pc up by the close, with London’s benchmark FTSE 100 climbing 1.33pc to 6,176.19 and Frankfurt’s Dax hot on its tail, rising 1.32pc.
Here a quick summary of what happened Monday:
- World stock markets advanced, helped by investor confidence in upcoming US quarterly earnings and the business outlook, and by hopes for progress towards a coronavirus vaccine.
- A spike in COVID-19 infections across the globe kept a lid on gains.
- On Wall Street, the Dow Jones index stood more than 400 points higher in the late New York morning.
- Key European stock markets were well over one percent up by the close.
- Earlier, Asia had led the way with solid gains across the region.
- Oil prices fell on festering fears over demand-destroying coronavirus, and before this week’s expanded OPEC+ technical gathering of key crude producers who are expected to curb production cuts.
Earnings season got underway with PepsiCo, one of the first major firms to update, helping set the stage for a potentially better than forecast season in general. Revenues at the drinks and snacks giant fell 3.1% in Q2 to $15.95 billion – far greater than the $15.38bn forecast. Adjusted earnings per share saw a similar beat, at $1.32 against analysts’ £1.25 estimates.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Asian stocks declined Tuesday amid fresh Sino-American tensions and concern over the economic impact of rising coronavirus cases. Crude oil fell. Shares retreated across the region with Hong Kong stocks faring worst. S&P 500 Index futures fluctuated after the benchmark briefly touched its highest since the pandemic sell-off in March, before closing lower. The Nasdaq hit another record before finishing in the red. Treasuries were steady and the dollar nudged higher.
I am thinking that once again we get a rise and dip and see a bit of a bear Tuesday kick in as the momentum of the drop form 6185 continues. The S&P needed to hold 3170 and we have stayed below that overnight, though the bulls will be keen to recapture that level. 3170 is the 2 hour support level for the S&P. The FTSE 2 hour support is at 6093 and has held overnight, which is why we have had this initial kick up to 6110 this morning.
If the bears break below the 6080 level then we will more than likely slide back down towards 6040, then the 5990 support level that we had pencilled in for last Friday (we bounced at 5995 instead). With yesterdays after the bell weakness the charts look fairly bearish to start with on the shorter time frames, and the 30 min has a few resistance levels of note as you can see form the list. The important one looks to be 6155 to start with as we have the red coral here, and then the fib at 6169 above that. We also have R1 at 6177 and should we see that then it would be a second test of the 25ema on the daily as well. Shorting the rallies still feels the right play for the moment.
For the bulls, they will be keen to break that higher resistance as it opens up a test of the top of the 10 day Raff at 6260. If the S&P bulls can break 3230 then further upside towards 3266 and 3303 are the next bullish targets.
If the bears on the FTSE were to break below 5990 then 5920 is the next support level of note, and looking at the Raff channels and the daily chart in isolation it would suggest that we are on for a slide now. Is the rally starting to fizzle out? A sustained break of 6000 will certainly get the bears going.
So, few levels of note nearby and it’s looking bearish again. Good luck today.
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