Technical analysis for FTSE 100 for 30th April 2024
The FTSE 100 extended its record rally for the fifth straight session on Monday, helped by positive corporate updates, while a stronger pound boosted midcaps. The mid-cap FTSE 250 advanced 1.3%, after touching highest levels in over thirteen months, and taking support from a rise in pound as the currency reached its highest in around two weeks against the dollar.
FTSE 100 stocks move in an inverse relationship to the currency, earning their revenues in dollars while reporting profits in sterling, but they were supported by positive company news.
The blue-chip FTSE 100 ended the session up 0.1%, after hitting an all-time high of 8,189.14 points earlier in the day. The index has gained for eight of the last nine sessions.
British stocks appear to have turned a corner after months of underperformance compared to their global peers as signs of inflation coming under control, and a recovering economy attract buyers.
While concerns remain that the U.S. Federal Reserve will delay interest rate cuts this year, market participants expect the Bank of England to start easing rates in August.
U.S. stocks gained ground on Monday and the yen surged amid suspected intervention as investors embarked on what promises to be an action-packed week.
All three major U.S. stock indexes ended green, extending Friday's rally at the onset of a week filled with high profile earnings, crucial economic data and the U.S. Federal Reserve's monetary policy meeting.
Asia
Asian stocks inched higher on Tuesday as investors awaited a slew of economic data, corporate earnings and the U.S. Federal Reserve's policy meeting, while the yen was slightly weaker a day after suspected intervention rescued it from 34-year lows.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.36% higher, set to clock in a nearly 1% gain for the month, its third straight month of gains. Nikkei rose 1% as Japan reopened after a holiday on Monday.
China stocks were mixed in early trading with the blue-chip index easing 0.07%, while Hong Kong's Hang Seng index was up 0.5%.
This week's data releases include European inflation and U.S. labour market reports, while the Fed is due to convene on Tuesday for its two-day meeting at which it is expected to stand pat on interest rates but strike a hawkish tone.
U.S. crude fell 0.18% to $82.48 per barrel and Brent was at $88.31, down 0.1% on the day.
FTSE 100 technical analysis for today, 30th April 2024
A brief foray yesterday below the 8150 key level saw 8140 set up a modest bounce that has continued overnight. However, with the bulls lacklustre performance yesterday the FTSE100 has gone bearish on the 2h chart with the 8180 area as resistance to start with today.
We also have a red 30m coral to start with at 8162. As such we could get an initial dip the morning down to test the 8110-20 area where we have S1 and the 30m 200ema.
The bulls will of course be keen to defend any test of the 8100 level so should we see a test of this area then a bounce would fit well. They will need to break above the 8180 area though today if we are to test the 8200 level. The Raff channels continue to head up though and bode well for some more upside over the next few weeks.
If we follow the ASX200 today then it will be a bullish day, after a spike down to the support.
The S&P500 defended the spike down to 5090 yesterday and may well try and push on again today to test the top of the 20d channel at 5160, if they can break above the 5120 level which is initial resistance. We have consumer confidence out at 15:00 with the forecast a slight drop to 104.
The bears on the other hand will be trying for a bear Tuesday. Gold dropping off yesterday suggests that we may well see some index strength kick in, and I am still looking for a test of the 8205 level before too long. Feels like buy the dip today will be a decent play, with some shorts off the key resistance levels.
We also continue earnings this week which will add to the volatility.
Above the 8180 level then 8205 as mentioned, with 8219 R2 next up. Support wise, below the 8100 level (and S2 is at 8096 today) then 8059 is S3 and a likely target. Not convinced that it will be as weak as that today though and more inclined to go with a 8180 to 8110 range, at least to start with.
Good luck today.
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