Technical analysis for FTSE 100 for 14th March 2024
UK's FTSE 100 ended Wednesday higher, clinging on to recent highs after data showed the local economy returned to growth at the start of 2024, while insurance firm Direct Line weighed on the midcap index post rejecting a sweetened take over bid.
The exporter-heavy FTSE 100 closed up 0.3%, notching a new nine-month high, while the more domestically focused FTSE 250 index ended flat.
British gross domestic product grew in January by 0.2% month-on-month, in line with economists' expectations, boosted by a rebound in retailing and house-building, offering some relief to Prime Minister Rishi Sunak ahead of an election expected this year.
Investors added to their bets of a rate cut in June, although the first one is not fully priced in until August.
UK's FTSE indexes have underperformed developed market peers as worries of a slowing economy and uncertainty on the timeline for interest rate cuts dampened risk sentiment.
Asia
Asian shares held near seven-month highs on Thursday though traded mostly sideways as investors awaited fresh catalysts that would provide further clarity on the global interest rate easing cycle.
Japan's Nikkei was headed for a fourth successive day of loss - its longest losing streak in about five months - as a potential policy pivot from the Bank of Japan (BOJ) at its meeting next week draws near.
MSCI's broadest index of Asia-Pacific shares outside Japan was last little changed and strayed not too far from a seven-month peak hit in the previous session, as traders shrugged off higher-than-expected U.S. inflation rate data.
Attention now turns to producer price data in the world's largest economy due later on Thursday, which feeds into the core personal consumption expenditures (PCE) price index. The core PCE index is the U.S. Federal Reserve's preferred measure of inflation.
Retail sales figures for February are also due later in the day and comes ahead of the Fed's policy meeting next week, where focus will be on clues as to how soon policymakers could commence their rate-easing cycle.
FTSE 100 technical analysis for today, 14th March 2024
The FTSE100 bounced just above the 7730 level yesterday yet the 7800 level remains elusive.... will it try and push above that today? If it does so then there are a cluster of resistance levels at the 7820 area with the R2 and key fib here, as well as being just above the 20d Raff channel top. As such, a dip off this level would make sense. A likely level to bank some profits for this holding from yesterdays bounce.
The 2h chart is also bullish to start with so we may well see a rise and dip based on that, along with bullish Raff channels now both heading up. The 10 day has started to turn further up as well as the March bullishness remains in play.
On the news front today we have the US PPI and retail sales at 1230 which are both forecasted to be positive, with a rise in retail sales. That may well help the S&P500 at that time.
Initial support is at the daily pivot at the 7767 level and we may well see the climb off this first thing, towards that 7820 area. Below the daily pivot then the 7730 area is the next level of note which is a test of the 30m 200ema and also just above S2 and the key fib, both at 7720. As such, should we get a drop down to this area then a long here is worth a go. Having pulled away from the 7700 level now the bulls will be keen to keep the momentum going.
Resistance wise, above the 7820 level then 7860 is the top of the 10d Raff channel and the next main area to keep an eye on, and we also have R3 at 7846 for today.
The Dax40 is still struggling to break the 18000 level and 17987 is the red 30m coral to start with today so the bulls will need to break that this morning. If we do get an initial rise then it may well manage to get as far as 18090 to test the key fib level before dropping back.
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
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
