Technical analysis for FTSE 100 for 22nd February 2024
Britain's blue-chip share index closed lower on Wednesday as lender HSBC plunged after it reported a shock $3 billion charge on its stake in a Chinese bank, while investors waited with bated breath for Wall Street darling Nvidia's earnings.
The blue-chip FTSE 100 index slid 0.7%, lagging major European peers ahead of the minutes from the U.S. Federal Reserve's policy meeting as well as keenly watched earnings from U.S. chip designer Nvidia. The mid-cap FTSE 250 index closed up 0.1%.
Uncertainty around the timing of interest rate cuts as well as nerves around high-growth U.S. technology stocks have kept investors on the edge this week.
Bank of England policymaker Swati Dhingra said there would be real economic costs to delaying interest rate cuts until there was further evidence that underlying inflation pressures were easing.
Following the closing bell overnight, Nvidia forecast a roughly 233% surge in quarterly revenue, sending its shares up some 10% after-hours.
ASIA
Asian equities climbed with US stocks futures after Nvidia Corp.’s better-than-expected sales forecast provided fresh impetus to the AI-led rally in global stocks. Japanese stocks rallied, with the Nikkei 225 Index topping a record intraday peak reached in 1989, driven by gains in technology shares and chip-gear producers. South Korea equities rose, while Chinese benchmarks climbed. The moves lifted a gauge of Asian shares to its highest level in almost two years.
FTSE 100 technical analysis for today, 22nd February 2024
Well the FTSE100 operated in its own little bubble yesterday and was a lot more bearish that the others, however having dropped down to test the 25ema on the daily at 7625 we saw a decent bounce - funnily enough it tested it just as the NVIDIA results were due out. And who says it's not gamed!??
Having bounced off that level and the NVIDIA results waking up the bulls again yesterday we may well be in for a bit more upside today. The S&P500 has managed to break the 5000 level again and is currently at 5025, so the bulls will be in "buy the dip" mode today. As you would expect pretty much all the indicators are currently bullish across the board, so that sentiment will probably play out on the FTSE100 as well.
Initial support is at the daily pivot at the 7672 level, and then the 7648 30m coral below that which is on the cusp of turning green to give better support.
Below that then the 25ema again at 7630 now, then S1 and the key fib at 7610. Not sure it will get that low today but the bulls will need to break above the 7720 level once again to lock in the bullish sentiment.
Talking of the bulls the initial resistance is 7715 with R1 and the key fib here. We also have a red 2h coral at 7721 just above that so this level may well be fairly key today. Following the drop off 7750 the Hull MA 2hr is also bearish and aligns with that level at 7722ish, so it may well be worth a short here.
Higher up than 7750 being the previous high would likely see a reaction for a double top move, while above that then 7772 R2 level is the next one of note.
We do PMI news out for the UK at 09:30 so keep an eye on that.
Good luck today.
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