Technical analysis for FTSE 100 for 28th February 2024
Britain's FTSE 100 ended flat on Tuesday, weighed down by consumer staples companies such as Unilever and Imperial Brands, while investors exercised caution ahead of key inflation figures from Europe and the United States later in the week.
While the globally-exposed FTSE 100 index ended steady, the mid-cap FTSE 250 slipped 0.2%.
Although the domestic economic data calendar is light this week, U.S and European consumer prices data will be closely watched for clues on the monetary policy path globally.
The FTSE large-cap and mid-cap indexes have had a lacklusture start to the week amid uncertainty over the timing of interest rate cuts by the Bank of England, against the backdrop of still high inflation and slowing economic growth.
BoE Deputy Governor Dave Ramsden said that he wanted more evidence that price pressures were easing before considering a reduction in rates.
Asia
Asian stocks were tentative on Wednesday ahead of a U.S. inflation reading this week that could influence the timing of the Federal Reserve's easing cycle, while the New Zealand dollar fell sharply after the central bank softened its hawkish stance on rates.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.11% lower at 527.14 points but hovering around a near seven-month peak of 531.56.
China stocks were mixed in early trading, with Hong Kong' Hang Seng index down 0.31% and China's blue-chip index up 0.46%.
FTSE 100 technical analysis for today, 28th February 2024
Another fairly quiet day on the FTSE100 yesterday as we await a catalyst, which could come today with the US GDP out at 13:30. If it does drop as forecasted we could see the bears have a go, especially as the S&P500 2hr chart has gone bearish now with resistance at the 5102 level.
I am thinking that we may well see a rise and dip play out today, and am looking at resistance on the FTSE100 at the 7714 and key 7750 area as well. Will it test that higher one though?! A short here is worth a go if it does.
The 2hr chart for the FTSE100 is actually bullish again as we have this choppy directionless week play out, and has support at the 7683 level. We have certainly just hovered around this 7700 level all week. The daily chart also remains bullish and the 25ema has now risen to the 7650 level.
S1 for today is 7669 and ties in with yesterday's low so an overshoot of that 2hr support to that and then a bounce may well play out, especially if the S&P500 defends the 5072 level with an opening drop.
Initially we have resistance at the 7699 level as well with R1 here and as such we may see a drop off from this level to test the 7670.
Below 7670 then 7650 is next up as per yesterdays analysis and then 7635 below that. That is S3 and the daily coral as well for today.
Not expecting a break of that but if it were to do so then the bears would be aiming for the 7571 200ema on the daily as the next key area. Keep that in mind!
Not too much more to say really. Good luck today and see you in the chat room!
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