Stock indices bounce with Oil, but stay vulnerable (FTSE 100 focus)

Intermediate
  • A small rebound for the major share averages over the past 24 hours, as the oil market has stabilised, and the oil futures price has rebounded.
  • However, this has not necessarily switched the theme from “risk off” to “risk on”, with global stock indices still suffering from losses inflicted earlier this week.
  • Here we spotlight the future on the UK benchmark equity index, the FTSE 100.

FTSE 100 future day trade outlook: Bounce, but looking for a roll back lower 

A Wednesday rebound above various resistances, as high as 5774, to ease the negative tone from Tuesday’s selloff through supports at 5663.5 and 5649.5 and Monday’s setback that closed Friday’s bull gap, but whilst capped by 5773.5 to keep the bias to the downside into Thursday.

·      We see a downside bias for 5694.5 and 5612; a break below aims for 5593 and maybe 5525.5.

·      But above 5774 targets 5814.5/33, which we would look to try to cap. Above aims for 5870/75.

FTSE 100 future intermediate-term outlook

A late February plunge below 7164 set an intermediate-term bear trend.

  • Downside risks: We see an intermediate-term bear trend to aim for 4701.5 and 4500, maybe 4060.5.
  • What changes this? Above 6398 shifts the intermediate-term outlook to neutral and through 6871.5 to bullish.

Daily FTSE 100 future Chart

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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