Technical analysis for FTSE 100 for 8th September 2023
The FTSE 100 closed higher on Thursday, snapping a three-day losing streak. The blue-chip index closed 0.21pc higher at 7,441.72, as aerospace supplier Melrose Industries surged 5.5pc on an upbeat profit outlook. The aerospace and defence index added 2.8pc to reach an all-time high.
Asia's stockmarkets dipped on Friday, with tech shares tumbling on deepening Sino-U.S. tensions, while the dollar was set to seal its longest winning streak in nine years as investors braced for U.S. interest rates to stay higher for longer.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.2% and is down 1.4% for the week. Hong Kong markets were closed for the morning due to storms lashing the city. Japan's Nikkei fell 1.37%.
FTSE 100 technical analysis for today, 8th September 2023
The dip got bought again yesterday but now seems to be holding a lot more convincingly, despite Apple's best efforts to drag the US down! The FTSE 100 may well see a dip and rise play out today and the bulls will be keen to ideally end the week above the 7500 level.
Initial resistance is at 7465 and we may well see an opening drop from here, down to test the 7415 Hull MA support on the 2h chart. Ideally this holds which would then set up a more bullish day, and a break of 7465.
If they do manage that then the next level of note would be the 7485 key fib and R1 level. Ultimately today we could see a rise towards the 7525 level that we recently dropped off, and a close around here would set up the bulls well for next week.
On the flip side, a break 7415 would likely then see a slide down to 7390 to test the lower daily support level. A break of that upsets the bulls a lot, as a slide all the way down to the 7350 level and a test of S2 and the bottom of the 10d Raff channel.
The bulls would be keen to hold this level. It's worth noting that the daily EMA's have also got close together and we may well have a cross to a bullish stance if the bulls defend the rise today. As mentioned above, that could set up a bullish week next week as we get the monthly rise and dip pattern for September (sell off starting mid month).
The pattern for today looks the same on the Dax40 and S&P500 with a dip and rise possible and as per the pattern we were gunning for yesterday really. I would likely to see 15730 and 4445 levels hold respectively for them.
Not too much more to say really. Have a good session today and a great weekend.
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