Technical analysis for FTSE 100 for 15th March 2024
Britain's FTSE 100 closed lower on Thursday, pulling back from the previous day's nine-month peak, though housing-related stocks outperformed the broader market, led by Vistry shares that hit a more than two-year high.
The globally focused FTSE 100 ended down 0.4%, a day after data showing the local economy bounced to growth in early 2024 sent the index to its highest since late May.
Further denting risk appetite was a hotter-than-expected February U.S. producer prices print, which fed uncertainty around the timing for interest rate cuts in the developed world.
UK equities have lagged peers so far this year as worries of stagnating economic growth and little exposure to technology-related stocks have resulted in investors looking elsewhere for better returns.
The broader household goods and home construction sector also got a 1.4% lift after a survey showed Britain's housing market picked up.
Asia
Asian stocks slumped on Friday, tracking tech-led declines on Wall Street after hotter-than-forecast U.S. inflation knocked back bets for how soon and often the Federal Reserve will cut interest rates.
U.S. stock futures pointed marginally lower following a 0.29% decline in the S&P 500 on Thursday. However, the impact of a big sell off in chip-sector shares reverberated in Asian markets, weighing on stock indexes around the region.
Hong Kong's Hang Seng Index slid more than 2%, as did South Korea's Kospi, which fell 1.6%.
U.S. benchmark bond yields held near the 4.3% level they reached on Thursday for the first time this month, following their biggest jump in three months. The dollar advanced to its highest since March 5 against a basket of major peers.
FTSE 100 technical analysis for today, 15th March 2024
It's option expiry today so expect a bit of volatility at 10:10 this morning and it may also set up a rise and dip sort of day, with some profit taking at the end. Initially the FTSE100 may well mimic the ASX200 and we get a rise towards the 7788 key fib and also just above the Hull MA at 7778.
If the bulls were to break above this then the next level of note is 7808 with R2 here, and as this would be just above the 20d Raff channel top at 7795 then we could see the bears have a go here. The bulls of course will want to break and hold the 7800 level, while the bears will be looking to capitalise on the weakness that is creeping in on the US markets with the hot PPI and weak Retail Sales data recently.
The various 2h charts are all bearish as well going into today with the 7778 FTSE100, 5173 S&P500 and 17995 Dax40 as resistance levels to keep an eye on today.
Support wise then the daily pivot is holding so far pretty well at 7740 and then 7733 for the 30m 200ema. Below this though and the bears would be targeting the 7700 level with S1 here, and the round number, while lower down the 7685 key fib is next.
The bulls defended the 7720 level again yesterday and will be keen to build on that today.
On the news front we have the Michigan Consumer Sentiment for March at 14:00 - forecasted to have remained static at 76.9.
So generally expecting a rise and dip today, and don't forget the OPEX at 1010. Usually spikes up then falls back down and we will probably trade the retrace in the live room.
Good luck today and have a great weekend.
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