FTSE 100 technical analysis for 29th August 2023
China stocks led Asian shares higher on Tuesday with investors welcoming Beijing's efforts at supporting markets, while bonds rallied and the dollar dipped on possibly softening U.S. data.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1%, with the Hang Seng (.HSI) in Hong Kong up more than 2% and mainland China blue chips up 1.5%.
China has halved stock trading stamp duty, loosened margin loan rules, put the brakes on new listings and approved new retail funds in recent days -- signalling, at least, resolve to steady the market even if it does little to support the sputtering economy.
FTSE 100 technical analysis for today
Back above 7400 to start the shortened week, and the bulls are gaining the upper hand again after the drop to 7220. They will of course be keen to continue to push on, with the 7461 level the next target for them. We have R3 here, but also more importantly the next daily resistance level of note. I would expect that we may well see the bears have a go here if we get this high today.
We almost tested the 7312 support on Friday and bounced well just above it, to continue to keep the 2h chart bullish. That now has green coral support at 7360ish for today. With the 30m 200ema here also I would like to see any test of this hold.
Higher support is at the daily pivot at the 7389 level and with that just below the 7400 that the bulls will be pleased to have recaptured, we may well see them defend any drop too here.
The day after a bank holiday can be a little bit tricky but a rise and dip would fit pretty well. I think we may well see that on the S&P500 as well, and then a bit of bear Tuesday to kick in later.
7480 is also the daily coral resistance and would be the first test of that since it went red. We are also just coming into a test of the 25ema on the daily at 7430 so could see a reaction here at the open and a drop down to test the support levels mentioned.
Dax40
The Dax could well have a decent double top set up today with the 15895 level and we also have the key fib just below at 15885. As such a rise to here then a drop off would fit well. If we get a dip on the Dax then I would like to see the pivot hold as support at 15774 as below that it could slide down to the 15676 key fib support.
S&P500
Similar for this really, with a bullish 2 chart and 4428 daily pivot support hopefully holding on any drop. The bulls will be keen to push up towards the 4460 level, and we have the R2 and key fib level here. Its also the top of the 20d Raff channel so with these three resistance levels here, we may well see the bears have a go here.
Good luck today.
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