Technical analysis for FTSE 100 for 26th September 2023
The FTSE 100 suffered its worst day in over a month as the blue chip index slipped 0.8pc following steady gains last week. European indexes opened the week in the red. France’s CAC 40 in Paris dropped 0.85pc while the Dax in Frankfurt fell by 1pc. Markets across the world have wobbled amid concerns interest rates will stay higher for longer than expected.
The City’s blue chip index fell by as much as 1.3pc in Monday afternoon, before recovering slightly in a late rally to 7,623.99. It marks its worst one-day performance since Aug 15.
Shares in Asia slid while Treasury yields and the dollar rose in a sign investors are yet to fully recalibrate interest rate expectations. Equity benchmarks for Japan, Australia and China all fell while a decline in South Korean equities dragged the Kospi Index to a six-month low. Hong Kong’s Hang Seng Index also decreased, falling as much as 0.9%, its lowest level since late November.
FTSE 100 technical analysis for today, 26th September 2023
Worked out well yesterday with the trades as we had another bearish Monday in succession. The end off September weakness is certainly playing out well and I am still looking out for the test of the 7550 area to tee up the October bounce. The 25 ema support on the daily is now at 7560 and we also have the daily 200ema at 7555 to give some more weight to this area.
We may well see a bit more downside today for a bit of a bear Tuesday, to then see a bit more strength kick in tomorrow.
Initially today I am thinking that we get a drop down to the 7570 area and with the S1 and key fib level here, that could then see a bounce towards the daily pivot again at 7633. The bulls may well struggle to push above this level though today.
Below the 7570 level then the 7555 area as mentioned, though should the bears break this then 7526 is S2. I am not sure that we will get that low as the S&P500 is coming into support on the daily at 4278 with the 200ema here, so should that drop just a little bit further then the bulls may appear around this area.
On the flip side, if the bulls were to break above the 7635 level then 7680 is R1 and the key fib so the next area to watch for. That would also be a bit of a double top with yesterday so in theory would get a reaction should it push this high.
For today though I am thinking that we see a bit of a dip and rise again. We have the bottom of the Raff channels looming into play as well with support from them at the 7580 and 7560 levels (10 and 20 day respectively) as you can see on the daily chart.
Good luck today!
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