Looking for a FTSE 100 rebound – FTSE forecasts

Intermediate

European equity indices posted solid rebounds on Monday on the US Labour Day holiday with US markets closed.

  • The FTSE 100 produced a particularly strong advance, assisted by Pound (GBP) weakened against both the US Dollar and Euro (GBPUSD lower and EURGBP higher).
  • The Pound Sterling weakness was driven by concerns regarding the EUR-UK trade talks, with Prime Minister Boris Johnson mow applying a 15th October deadline for talks to progress.
  • Here we focus on the short-term upside for the future on the UK benchmark index, the FTSE 100.

FTSE 100 day trade outlook: Recovery and better rebound tone

Day trade update and view

A strong recovery on Monday (helped by GBP weakness), to advance above 5865 and 5904.5 resistances and just above our 5945/50 resistance area, to build on Friday’s erratic rebound/sell-off/ rebound from just below 5779.5 support, from, 5776.5, to leave a further bounce bias for Tuesday.

Day trade setup

  • We see an upside bias through 5959.5 for 5999.5/6004.5; a break here aims towards 6040/59.5.
  • But below 5869 opens risk down to 5815.5/09, then possibly key 5779.5/76.5.

FTSE 100 intermediate-term outlook

The early September push below key 5815.5 signalled an intermediate-term shift to a bear trend.

  • Downside risks: We see an intermediate-term bear trend to aim for 5651, 5325/16.5 and maybe towards 5000.
  • What changes this? Above 6267.5 shifts the intermediate-term bear trend to neutral; through 6512.5 to an intermediate-term bull trend.
Daily FTSE 100 Chart
Daily FTSE 100 Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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