Technical analysis for FTSE 100 for 29th August 2024
- APAC stocks traded with modest losses across the board following the weak lead from Wall Street and in the aftermath of NVIDIA's ill-received earnings.
- NVIDIA settled -6.9 % after-market despite solid earnings and a USD 50bln share buyback, some suggested disappointment as metrics fell short of the highest forecasts.
- NZD was boosted after ANZ Business Outlook soared whilst JGB futures saw upticks on a well-received 2-year JGB auction
- European equity futures are indicative of a softer open with the Euro Stoxx 50 future -0.2% after cash closed higher by 0.3% on Wednesday.
- Looking ahead, highlights include Spanish CPI, German CPI, EZ Sentiment, US PCE (Q2), GDP (Q2), IJC, ECB’s Rehn, Lane; Fed’s Bostic, Supply from Japan, Italy, US, and Earnings from Lulelemon, Dollar General, Best Buy, Marvell
UK's main FTSE 100 stock index ended flat on Wednesday as a sharp sell-off in luxury and metal mining shares was offset by gains in aerospace-defence and pharmaceuticals.
The blue-chip FTSE 100 index was largely unchanged, after rising for the fourth straight session on Tuesday, while the domestically-focused mid-cap FTSE 250 was down 0.5%.
Asia & Overnight
Asian shares followed Wall Street futures lower on Thursday as Nvidia's results disappointed some bullish investors, while the dollar steadied and the Treasury yield curve came within a whisker of turning positive.
Investors now await U.S. weekly jobless claims, which have gained prominence given the Federal Reserve's focus on the health of the labour market, as well as inflation readings from Germany and Spain, for clues on rate-cut prospects beyond September.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.6% as tech stocks dragged. The Nikkei eased 0.4% while South Korea dropped 0.7%.
Nvidia's third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates, but the results still failed to impress the most bullish investors, who have driven a dizzying rally in its shares.
Shares of the AI darling slumped 7.6% in after-hour trading, losing about $236 billion of its market value.
As a result, Nasdaq futures dropped 1% early in Asia, while S&P futures skidded 0.5%.
FTSE 100 technical analysis for today, 29th August 2024
Nvidia and Big Tech slumped after the results, despite the beat, however overnight the FTSE100 futures have recovered with another possible test of the 8400 in sight. The longer times frames remains positive with both the Raff channels continuing to head up. Initial resistance from the 2h chart at the 8360 level will play a part to start with and as well also have R1 here we may well see an initial dip down to the first support level at the 8330 area.
This level looks pretty key to start with as we have the daily pivot here, along with the green 30m coral, and it will be the first test since that changed to support. Just below here we also have there 30m 200ema so I would like to see this hold really for a push up towards the R2 level at 8401. That would also then be a nice double top with Tuesday's high. The top of the 10d Raff is also here now too.
Below the 8320 level then the bears would be looking to take it down to S2 at 8275. That though ties in with the daily 25ema support level which is still bullish - 8272 for that - so in theory we should see another bounce off this level if it were to be tested.
Resistance wise, if they break 8400ish then 8424 R3 is the next key level, with daily resistance higher up at 8466 - I don't think we will get that today though!
US GDP data out at 1330 may provide some fuel for the bulls, as the forecast is an increase to 2.8%, from 1.4% previously. Expect some volatility then.
Good luck today.
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