Technical analysis for FTSE 100 for 29th April 2024
Britain's benchmark FTSE 100 scored its fourth consecutive record high on Friday as strong earnings from U.S. tech giants buoyed investor sentiment, while cybersecurity firm Darktrace rallied following a buyout deal by private equity firm Thoma Bravo.
The blue-chip FTSE 100 ended the session up 0.8%, after hitting a fresh all-time high of 8,146.79 points earlier in the day. On a weekly basis, the index marked its biggest gains since mid-September.
Sentiment in Asian and broader European markets also gained support from upbeat earnings from Wall Street tech titans Alphabet and Microsoft
Among stocks at home, NatWest jumped 6.1% to the top of FTSE 100, touching a more than one-year-high after the British bank's first-quarter profit fell by a less-than-expected 27%.
Anglo American rejected BHP Group's 31.1 billion pound ($39 billion) takeover proposal, saying the bid significantly undervalued the London-listed miner and its future prospects.
Meanwhile, British consumer sentiment returned to a two-year high this month as households took a more positive view of the economy and their own finances, a long-running survey showed.
Across the Atlantic, U.S. monthly inflation rose moderately in March, but stubbornly higher housing and transportation costs suggested the Federal Reserve could keep interest rates elevated for a while.
Asia
Asian stocks got off to a positive start ahead of the Federal Reserve's policy meeting later in the week, while oil prices ticked down on expectations that higher-for-longer U.S. interest rates would dampen demand.
MSCI's broadest index of Asia-Pacific shares outside Japan tacked on 1%, helped by Wall Street's positive lead on Friday due to a rally in mega cap growth stocks.
The upbeat sentiment spilled over into the new week, with Nasdaq futures rising 0.36% and S&P 500 futures gaining 0.27%.
Hong Kong's Hang Seng Index similarly advanced 1.3%, while China's blue-chip index edged 1.4% higher.
The Fed's two-day monetary policy meeting beginning Tuesday takes centre stage for the week, where expectations are for the central bank to keep rates on hold.
Focus, however, will be on any guidance for the central bank's rate outlook, after repeated runs of stronger-than-expected U.S. economic data and still-sticky inflationary pressures derailed market bets on how soon the Fed could commence its rate easing cycle.
Market pricing shows a first Fed rate cut is expected in September, from a June start only a few weeks ago, with just over 30 basis points worth of easing expected this year.
In commodities, Brent fell 0.9% to $88.70 a barrel, while U.S. crude similarly eased 0.85% to $83.14 per barrel, with news of a potential Gaza ceasefire also easing fears of supply constraints.
A Hamas delegation will visit Cairo on Monday for talks aimed at securing a ceasefire, a Hamas official told Reuters on Sunday, as mediators stepped up efforts to reach a deal ahead of an expected Israeli assault on the southern city of Rafah.
FTSE 100 technical analysis for today, 29th April 2024
A strong end to the week and a positive start to this one bodes well for further upside to come. 8204 is the next key daily resistance level and we may well see that this morning and a subsequent drop off to retest the key support area at 8155. 8217 is also R2 and I would like to see this cap any early proceedings and get a decent reaction.
8160 is the Hull MA on the 2h, and also just above the gap from Friday at 8156. As such this area may well hold any test, at least initially. If it does so then that should set up a decent rise towards the 8215 level again.
Below 8150 then the bears will be aiming for the 8134 daily pivot, and then 8104 below that where we have S1 and also the round number. Given the positive back drop though currently (and both Raff channels continue to head up well) the bulls have the momentum at the moment.
If they manage to break above the 8217 level then 8269 is R3 and just below the top of the 20d Raff channel at 8287. Might be a big ask to get that high today but do bear it in mind. We may well be seeing that 8300 sooner rather than later!
With Egypt offering a new proposal for a truce between Israel and Hamas in which some Israeli hostages would be exchanged for Palestinian prisoners and a three-week ceasefire, we could see a boost depending on how that plays out as well.
Major news is a bit light today but I am expecting the bulls to continue pushing things for the moment.
Good luck today.
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