Technical analysis for FTSE 100 for 30th August 2023
The FTSE 100 closed in the green after receiving a boost from Britain’s housebuilders. Britain’s blue-chip index finished 1.72pc higher at 7,464.99, while the domestically focused FTSE 250 midcap index closed up 1.86pc at 18,468.59.
Stocks in Asia came off their highs as the strong rally in Chinese equity markets gradually evaporated on persisting concerns over its economy. The MSCI Asia Pacific Index climbed 0.8% as shares in mainland China and Hong Kong gave up most of their gains. Benchmarks had earlier rallied, with the Hang Seng Index rising as much as 1.4%, after Chinese state-owned lenders were reported to prepare to reduce rates on the majority of outstanding mortgages, as well as on deposits.
Germany has approved €32bn (£25bn) in corporate tax breaks across four years to boost its stagnant economy. The tax cuts aimed at small and medium-sized businesses were passed by Germany’s ruling coalition government on Tuesday.
FTSE 100 technical analysis for today, 30th August 2023
Everything recovering well from the sell off earlier in August and talk of stimulus measures and a pause to rate rises helping the bulls for the moment. Initially today we may well see a drop as we are just at the 7487 daily resistance level and slightly above the 20d Raff (bit of a breakout today if it pushes up higher) and a drop down to the daily pivot at 7450 would make sense.
The ASX200 had a very positive session and overall we may well see the bulls try and do the same here. The Dax40 is flirting with the 16000 level as well, and a test of the red daily coral at 16037 (aligns with R1 well too at 16042) would work.
7502 is the key fib for the FTSE100 to start with and as its also the round number it may prove a hard level to break initially. If they do then 7522 is R1 for the next level, but then above that we have decent looking resistance at the 7552-7561 area - and if we get this high then I would like to see a drop off from here.
Just above that is the top of the 10d Raff at 7581 but that may be a big ask for today.... famous last words again!
Support wise, then the daily pivot as mentioned at 7447. Of more significance is the 7405 area as we have S1, the key fib and the 30m 200ema all around here. If we were to get that low then I would expect it to hold, especially as its a round number, and as the bulls have pushed on so well recently, they will be keen to defend that.
We may well not get that low though and see the pivot hold anyway today, as we push up before an end of month banking session tomorrow (and subsequent drop). Traders will be keen to chalk up a decent months performance as well for August.
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 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