Technical analysis for FTSE 100 for 21st February 2024
The UK's main stock indexes fell on Tuesday to snap a four-day winning streak as losses in base metal miners due to tepid copper prices eclipsed gains in Barclays (LON:BARC) after the British lender laid out plans to overhaul its business.
The blue-chip FTSE 100 index eased 0.1% after rising to a seven-week high earlier in the session. Industrial miners slid 2.55% as copper prices swung between gains and losses, while traders weighed demand prospects in top consumer China as it comes off the Lunar New Year break.
Bank of England Governor Andrew Bailey on Tuesday said he was comfortable with investors betting on interest rate cuts this year but pointed to signs that Britain's economy was picking up after falling into recession in late 2023.
Asia
Asian stocks eased on Wednesday as diminishing expectations of early interest rate cuts from the Federal Reserve sapped risk appetite, with investors looking to the minutes of the U.S. central bank's last meeting for clues on the policy outlook.
FTSE 100 technical analysis for today, 21st February 2024
Today's big event is the NVIDIA results after the US bell this evening. Expect some volatility at 9pm! In the meantime, the short from yesterday is still running though taken profits as it has fallen, and I will trail stop the rest (currently at breakeven). The 7750 level certainly got a decent reaction following the bulls breaking above the 7720 level.
Initially I think today may see a bit more of a slide down towards the 7675 support level where we have S2 and the key fib. 7701 is first up though as we have the green 2h coral here, and its also S1. With the round number for good measure we could see a defence of this, though overnight has remained fairly weak.
Below the 7675 level then 7650 and 7634 beckon, with the latter being the daily coral (now green and first test).
Resistance wise, then yesterday's high at 7750 is the main level to watch, and following the drop the 2h chart is now bearish, and has 7755 as the Hull MA resistance level. As such, a double top here, possibly early afternoon, if we get some buy the rumour sell the news play out, may well then see a drop off. A few longs may well choose to take some profit off the table ahead of the NVIDIA results as well.
Above the 7750 level then once again the 7800 area is the next likely target and we have R3 at 7791. Both the Raff channels continue to head up as well, and the daily EMAs are bullish with 25ema support down at 7631 for today. Should we get a pullback to this line during the latter part of February we may well then see a bounce here into March.
Good luck today.
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