Technical analysis for FTSE 100 for 15th January 2024
The FTSE 100 closed higher on Friday after a jump in commodity-linked stocks offset losses in luxury group Burberry, but uncertainty around the outlook for interest rate cuts meant the main UK stock indexes logged weekly declines.
The blue-chip FTSE 100 climbed 0.6% on Friday, but the week's performance marked the second conecutive fall as investors unwound their bets on aggressive monetary policy easing this year.
Meanwhile, data showed Britain's economy grew slightly more than expected in November but remained at risk of a mild recession. Gross domestic product (GDP) expanded by 0.3%, slightly beating economists' forecasts for 0.2% growth in a Reuters poll but output shrank by 0.2% in the three months to the end of November.
Asian shares got off to a stumbling start on Monday as China's central bank wrong footed markets by skipping on a rate cut, even as data due this week is expected to show the economic recovery there remains fragile.
China reports economic growth data for the fourth quarter and a slew of monthly figures on Wednesday, and investors have become used to being underwhelmed by activity as Beijing drip feeds its stimulus. Chinese blue chips were little changed in response, having earlier reached their lowest since early 2019.
FTSE 100 technical analysis for today, 15th January 2024
The US markets are closed today for Martin Luther King day so we may well see a bit more of a subdued session. Initial support is at the daily pivot level at the 7622 level and we also have the green 30m coral here. If the bulls can hold this and have an attempt at a bull Monday then a rise towards the 7700 level may well play out, though a slow drift up is probably more likely.
The 2h chart is also bullish to start with and the 7617 Hull MA is support on that as well. The bulls will need to break the 30m 200ema to start with though as that capped the bullishness on Friday, and we have resistance from that at 7646 to start with.
If the bears were to break below the 7615 area then a slide down to S1 at 7588 and the 7582 daily coral would likely play out in fairly short order, and we also have the key fib at 7582.
Below that then 7522 would probably be the next major support I am looking for as we have daily support here. I don't expect it to get that low today.
Resistance wise, above the 7700 level then ultimately 7770 is the next level of note that the bulls will be aiming for, though again I am not expecting us to get this much range today, with the US closed.
Good luck today
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