Early end of week | rise and dip | 7982 8017 resistance | 7926 7910 support

Early end of week | rise and dip | 7982 8017 resistance | 7926 7910 support

Technical analysis for FTSE 100 for 28th March 2024

The FTSE 100 ended flat on Wednesday as investors stayed away from making big bets in a holiday-shortened week, while paper and packaging firm DS Smith and specialised products and service distributor Diploma on deal-related news.

Gold miners led the charge in sectoral gains with 4.2% jump, tracking higher bullion prices.

On the flip side, automobiles and parts index dropped the most, down 4.6%, dragged lower by a 15% slump in automotive fluid storage firm TI Fluid Systems's shares after a discounted share placement.

The FTSE 100 index ended flat, while the domestically oriented FTSE 250 edged 0.2% higher to notch another more than one-year closing high.

The blue-chip UK stocks index has traded in a tight range this week as investors digested recent gains after dovish signals from major central banks, including the Bank of England (BoE) drove the blue-chip index to its best week gain in more than six months and a one-year high on Friday.

Investors were focussed on a key reading of the U.S. personal consumption expenditure price index (PCE), the Federal Reserve's preferred inflation gauge, due on Friday, when most global markets will be shut for the Good Friday holiday.

Investors will now turn to the UK's fourth-quarter gross domestic product (GDP) readings due on Thursday.

The yen languished near its weakest in decades on Thursday though the threat of intervention from Japanese authorities kept investors leery of pushing the currency to a new low, while Asian stocks fell ahead of a key U.S. inflation reading.

Markets were largely rangebound ahead of Friday's much-anticipated U.S. core personal consumption expenditures (PCE) price index data, the Federal Reserve's preferred measure of inflation. Few markets will be open to digest the new reading, however, given the long Easter weekend in many countries.

In China, stocks were in the red, pressured by strong selling by foreign investors because of lingering concerns over the outlook for the world's second-largest economy.

The renewed dollar strength halted a blistering rally in gold that sent it to a record peak last week. The yellow metal eased 0.2% to $2,189.81 an ounce .

Oil prices meanwhile edged up, with Brent gaining 36 cents to $86.45 a barrel, while U.S. crude rose 44 cents to $81.80 per barrel.

FTSE 100 technical analysis for today, 28th March 2024

A late afternoon push from the bulls yesterday ahead of the Easter weekend (markets closed Friday and Monday don't forget!) which saw the FTSE100 pull away from the 7900 level and bring 8000 into play for today. Will we see a strong end to March? The bulls will certainly be trying and we may well even get a test of that 8020 resistance area today, as we also have R3 there currently.

Initially today the bulls will want to be quick out the blocks but we have the 7980 level as resistance first up. R2 and the key fib are both here so we could see the bears have a go here.

An intial drop down to test the 7940 level where we have the green 30m coral and another test of the 2h coral here would fit pretty well. Should the bears break this though then the 7926 daily pivot is next up and I would like to see that hold really today for push back up to end the month. A rise and dip would make sense with some profit taking later on today.

The 2h chart is on the cusp of going bullish again but the bulls will need to keep the upper hand today to lock that in, and if they can keep the strong tailwind from yesterday afternoon going they should manage a test of the 8000 level.

Below the 7926 daily pivot then the 7908 200ema on the 30m is next, but we would also then possibly see a retest of yesterdays low below that, and a test of the key fib at 7877.

Resistance wise I feel that they may struggle to break above the 8020 level today but keep a close eye on the 7980 area as well as that is quite key first up.

The S&P500 2h chart is bullish and has decent looking support at the 5238 level, which also tallies with the daily pivot level. As such a climb from here would be good to see. Likewise a test and hold of the daily pivot on the Dax at 18487 would be good to see for a bounce at least initially.

Todays USA news is GDP at 12:30, forecasted to have dropped to 3.2% from 4.9% previously. Then at 14:00 we have the Michigan consumer sentiment. Might see some volatility at both those times.

Ahead of the long weekend (and tomorrows news) we may well see some profit taking towards the close of play.

Good luck today and have a great break - back on Tuesday!

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

Recommended broker IC Markets
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

Day trading for beginners - Join today and get:

  • Daily detailed analysis before the market opens
  • Detailed trade plans for the FTSE100, S&P500, Dax40 and Gold
  • Email updates during the day
  • Live trading room open all day
  • Telegram chat room groups
  • Help and support

Membership is £59.99 a month. My results spreadsheet in Excel can be viewed here

Latest technical analysis tips for trading and opinion