Technical analysis for FTSE 100 for 6th March 2024
Britain's blue-chip stock index ended a touch higher on Tuesday, helped by gains in defensive sectors, such as healthcare and utilities, while Spirent Communications notched its best day in over two decades following a buyout offer.
The FTSE 100 closed up 0.1%, paring losses that saw the index near three-week lows earlier in the session.
Sectors expected to fare better during times of economic slowdown, such as drugmakers and utilities gained 0.6% and 2.5%, respectively.
Caution prevailed ahead of finance minister Jeremy Hunt's budget statement on Wednesday where he is expected to cut the rate of social security contributions by two percentage points, the Times reported.
Asia
Asian stocks rose on Wednesday as traders awaited policy cues from Beijing during its week-long annual session of parliament after a prior lack of stimulus measures disappointed some investors, while gold and bitcoin eased after touching record peaks.
Traders were also hesitant to place major bets ahead of congressional testimony from Federal Reserve Chair Jerome Powell starting later on Wednesday that will be parsed to gauge if and when the U.S. central bank is ready to start cutting interest rates.
Chinese stocks were mixed a day after Beijing set a widely expected 5% growth target for 2024 at a key parliament meeting that lacked major stimulus measures.
FTSE 100 technical analysis for today, 6th March 2024
Another interesting day on the FTSE100 yesterday with a very slow reaction at the 7650 resistance, down to 7630 but the bulls have fought back and we now have support at 7645 on the 2h chart!
Based on the moving averages its all quite bullish for the FTSE100 today, and if we get an initial leg down, 7645 and possibly the 7631 daily pivot we may well see this hold for a push back up towards the 7700 level.
7715 remains as resistance above that and should we see that today then a short here is worth a go. We also of course have the budget today and the salient points have already been leaked/released but we may well see a bit of volatility around that time, at 12:30.
Below the 7630 level then 7600 once again being the round number and recent low. However, should we start to slide again then we still have the daily support at the 7576, along with S2 and the 30m 200ema at 7573, so should we see this level then it bodes well for a bounce here.
Generally today I am expecting the bulls to fight back a bit, especially as the 2h chart has gone bullish again.
The 10d Raff is heading down now, though the 20d remains heading upwards, and the moving averages remains bullish too. As such, it's still in buy the dip on that longer time frame.
The 30m chart is also bullish to start with, with the green coral for support at the 7637 level and just above the pivot.
So keep an eye on the key levels and good luck today.
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