FTSE 100 technical analysis for 9th August 2023
32 point FTSE 100 dividend today
The FTSE 100 ended lower Tuesday as bear Tuesday kicked in, although reversed some earlier losses. The blue-chip index finished down 0.36pc at 7,527.42, while the FTSE 250 midcap index dipped 0.11pc to 18,841.54.
Asian shares were on the defensive on Wednesday after data showed that China slipped into deflation in July, a negative sign for the global growth outlook although it could serve as a damper on global inflationary forces.
Closely watched China data on Wednesday showed consumer prices fell 0.3% in July from a year ago, the first decline since February 2021, although it was slightly better than the forecast of a 0.4% drop. Producer prices fell for a 10th consecutive month. The data followed disappointing trade figures a day earlier that fuelled concerns about the global economic outlook.
Markets are waiting for the U.S. inflation report on Thursday, which is expected to show headline inflation picking up slightly in July to an annual 3.3% pace, while the core rate is seen unchanged at 4.8%.
FTSE 100 technical analysis - 32 point FTSE 100 dividend today
Nice bounce from the 7490 level yesterday which has kept going overnight boding well for some further strength today. The S&P500 put in a flush down to the 4463 level before bouncing back (the FTSE100 didn't follow it down, which suggested that the S&P500 would probably bounce back) and looks to be on track for a push past the 4500 level and to put in some more gains.
That may well help the FTSE climb towards the 7600 level but we still have the 7580 resistance level in play initially and with R1 and the key fib also here for today we may well see an early rise falter here.
A drop back to then test the supports before more upside today would fit well, especially as we have the large 32 point dividend to be applied today.
Above the 7580 level then 7615 is R2 and would likely be seen later, and the 2h chart is now looking more positive with 7515 showing a green coral and the Hull MA here as well.
Lower down the 7482 is now a green daily coral and would set up a double bottom with yesterday were it to slide down that low. I think though with the daily pivot and the 30m coral both at 7535 this area should show decent support.
We have the US inflation figures out tomorrow and the market may well be pricing in a further drop on that. That should then see some more upside on the S&P500 today as well (buy the rumour!).
Above 7615 then 7660 is R3, but we have the top of the 10 day Raff at the 7645 below that, which is probably a more realistic upside level to look for today if they break above 7615.
Not too much more to say really.... looks like the bulls are grabbing this again, and as long as the S&P500 defends any drop down to the 4485 area then we should see that remain the case for the moment. Don't forget the divi at 16:30 on some platforms, 21:00 on others, as that will affect open positions on index trades.
Good luck today.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting - Read more here
Recommended Broker for FTSE 100 trading and how to start trading using support and resistance
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 FTSE100, 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 FTSE100, DAX40, Gold and S&P500.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and webinar group membership for discussion and realtime trade updates