Stocks surge – FTSE 100 Forecast

  • The “risk on” phase has further extended from late May into early June, with global share indices again surging to new cycle highs Tuesday and already into Wednesday.
  • The positive global view continues to be driven by the successful easing of lockdowns, the reopening of the European and US economies, and as of yet no signs of a significant second wave of the coronavirus pandemic.
  • This is despite ongoing protests, riots and tensions within the US and also the strains between China and the US (plus other nations)
  • Here we look at the positive technical bias to the FTSE 100 forecast.

FTSE 100 Future day trade outlook: Aiming into the key 6282-6398 March bear gap

A Tuesday advance and still higher this morning with a bull gap at 6248-39 to a new cycle high above 6239.5 to sit just below the key March bear gap at 6282-6398, to build on Monday’s firm rebound and to keep the risk higher Wednesday.

·      We see an upside bias for the bottom of the key March bear gap at 6282; a break above here aims for 6335/40 and even the gap top at 6398

·      But below 6248-39 targets 6200, maybe even towards 6139/29 and 6102/00.

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 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

Comment on this video

    1. Hi Adam, at the moment a significant pullback does not seem likely, but there maybe a dip opportunity today into the ECB. Watch out for a deeper correction if the ECB do not deliver on the QE.

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