Bear Tuesday with 7690 7735 resistance | 7625 7610 7575 support

Bear Tuesday with 7690 7735 resistance | 7625 7610 7575 support

Technical analysis for FTSE 100 for 6th February 2024

The FTSE100 started the week on a tepid note as the pound slipped to a near eight-week low against the greenback following strong U.S. economic data that pushed investors to trim their rate cut bets for 2024.

The internationally focused FTSE 100 index closed flat after paring gains during the session, while the domestically focused FTSE 250 fell 0.8%.

The pound fell to its lowest against the dollar since Dec. 13 after a survey showed the U.S. services sector picked up in January and Federal Reserve Chair Jerome Powell said in an interview that the Fed would "give it some time" before cutting interest rates.

British services businesses started 2024 on a robust footing, with a solid inflow of new orders and the fastest hiring in six months, a survey showed.

Meanwhile, another survey showed Britain's unemployment rate was much lower late last year than previously thought, increasing caution around early rate cuts.

The majority of money markets now expect the Bank of England to initiate interest rate cuts at their monetary policy meeting in June.

Asia stocks rise as China rebounds
Asian shares edged up on Tuesday thanks to a bounce in battered Chinese markets, but elsewhere investors were cautious amid diminishing expectations of a near-term Federal Reserve rate cut, which in turn underpinned the dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan rose more than 0.8%, reversing a 0.7% decline from the previous session. That was helped by a sharp rise in Chinese stocks, as recent signs of support from state-backed investors and moves from authorities helped stem heavy losses in the market.

Data on Monday showed the U.S. services sector growth picked up in January as new orders increased and employment rebounded, adding to growing doubts about the slew of Fed rate cuts priced in for this year, which had already been dialled back in the wake of Friday's blockbuster U.S. jobs report.

FTSE 100 technical analysis for today, 6th February 2024

The bulls managed to defend the 7600 level after all yesterday so that still remains as the line in the sand with the 7570 level as support below that. For today though it looks like we may well follow the ASX200's lead and get a bit of an initial rise towards the 7678 key fib, and ultimately today a test off the 7690 daily resistance level.

A short here would be worth a go in case a bit of bear Tuesday kicks in later and we drop off that area down to the 7630 again.

Above 7690 then the bulls would be looking to crack the 7700 level, and that would likely lead to the 7735 resistance area. That however might be a big ask for today and therefore keep a close eye on the 7690 for a reaction.

With the climb off the 7600 level the daily chart remains bullish for the moment and if the bulls are quick out the blocks today then the 2h should flip to bullish later. 7656 is the 2h coral line and we should see a move above this this morning. The Hull MA's are also starting to look a more positive, while the Raff channels are heading up still. 7605 has now become the bottom of the 10d Raff channel also.

Support wise then the 7626 area is good to start with as we have the daily pivot and the 30m coral here so I would like to see this hold any early tests. Below the 7570 level then it would upset the bulls as would likely then see a test of the 7540 level. That said I am expecting more of a rise and dip to play out today, and should we test 7690 then that would fit the charts very well.

Not really a massive amount more to say for today really. Good luck today!

Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting

Recommended Broker for FTSE 100 trading and how to start trading using support and resistance

Recommended broker IC Markets
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!

Membership, Trading Tips, Support and Resistance Levels with Live Trading

If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.

What you get

  • Daily Analysis pre market open (sent around 7am each day) for FTSE 100, DAX40, Gold and S&P 500.
  • Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
  • Telegram live trading room and group membership for discussion and realtime trade updates

Keep up to date with new content, free sign up below with just your email address

Day trading for beginners - Join today and get:

  • Daily detailed analysis before the market opens
  • Detailed trade plans for the FTSE100, S&P500, Dax40 and Gold
  • Email updates during the day
  • Live trading room open all day
  • Telegram chat room groups
  • Help and support

Membership is £59.99 a month. My results spreadsheet in Excel can be viewed here

Latest technical analysis tips for trading and opinion