FTSE 100 technical analysis for 7th August 2023
Will the FTSE 100 be bullish today?
Most Asian shares declined Monday as traders assessed a mixed US jobs report for clues on the Federal Reserve’s next decision. The intensifying Ukraine-Russia conflict also weighed on sentiment.
Asian share markets were in a cautious mood on Monday after a mixed U.S. jobs report sparked a rally in beaten-down bonds, but new hurdles lay ahead in the shape of U.S. and Chinese inflation figures due later this week.
MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction firmer in thin trade, after losing 2.3% last week. Japan's Nikkei slipped 0.2%, but found support at its July low. A summary of the last Bank of Japan meeting showed members felt making yield policy more flexible would help extend the life of its super-easy stimulus. Chinese blue chips eased 0.7% with investors still disappointed at the lack of major and concrete stimulus steps from Beijing.
FTSE 100 technical analysis - Will the FTSE 100 be bullish today?
The bulls defended the 7500 level well on Friday and will be keen to build on that today to have a decent bull Monday. Initially we should see a rise towards the cluster of resistance levels at the 7560 level whereupon we may see the rise falter again. This is R1, key fib and 30m 200ema here and a drop down to test the pivot at 7526 from here would fit well.
Generally today I am thinking that we may well see some strength kick in and have a bit of a bull Monday. The S&P500 will be keen to push on towards the 4532 level again and ideally break above this as that would then open up a test of the 4563 level with R2 here. That then should help the FTSE100 to rise as well, and ideally we break 7600 for the bulls to test the R2 level at 7613.
Splitting them is the daily resistance at 7580 and it will be worth keeping an eye on this level for a reaction, as we have the daily 200ema here.
Above the 7613 level then 7654 is R3 but that maybe a bit of a big ask for today.
Support wise, 7526 daily pivot initially as mentioned, then below that the 7480 S1 level and 7475 for the 20d Raff. Should we see this area then I would like to see it hold, otherwise a slide down to the 7439 S2 level is highly likely.
As mentioned I think we will have a bit more of an optimistic day today, and the bulls will try and build on Friday's strength. They are certainly going to be keen to try and get it above the 7600 level ASAP I think.
The S&P could try and close the gap initially at 4481 if the bulls are not relatively quick out the blocks today so again, keep an eye on this level. Gapping up to be above the 4491 level to start the week bodes well for some strength today though and buy the dip may well be the best plan for this today.
The Dax40 daily chart has gone bearish for the first time, with the EMA cross over, and 16055 looks to be strong resistance on that for today with R2 here and a test of the EMA on the daily. As such, should we break above the 15995 level where we have the initial resistance watch for the next reaction here.
Good luck today.
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