Rise and dip on profit taking later | 7714 7750 resistance | 7680 7650 7632 support

Rise and dip on profit taking later | 7714 7750 resistance | 7680 7650 7632 support

Technical analysis for FTSE 100 for 23rd February 2024

Britain's main stock indexes closed higher on Thursday, helped by a series of positive updates from blue-chip firms, while data pointed to strong growth for domestic services firms and showed business optimism at a two-year high.

The blue-chip FTSE 100 closed up 0.3%, while the domestically oriented FTSE 250 index added 0.8%.

Still, the FTSE 100 lagged European and U.S. markets, which rose to a record high after stellar forecast from chip designer Nvidia spurred a rally in global technology stocks.

Britain's economy kept up its early 2024 momentum with a survey showing strong growth for services firms and business optimism at a two-year high, but inflation pressures are likely to keep the Bank of England wary about cutting borrowing costs.

The central bank this month signalled that the time might be approaching for cuts to its benchmark lending rate. But most policymakers are still looking for evidence that inflation pressures will not persist.

Asian stocks gained for a second day on Friday, fueled by the global rally in equities that’s seen markets from the US to Europe and Japan hit all-time highs.  Australian, Taiwanese and South Korean equities advanced. Japanese markets were closed Friday for a public holiday. S&P futures hovered near all-time highs around 5,100 in the aftermath of Thursday’s powerful tech rally, while European contracts were steady.

FTSE 100 technical analysis for today, 23rd February 2024

The FTSE100 continues to lag the global rally, on account of not really having any tech shares! It's hanging in there though and we may well see a bit more effort from the bulls today to test the 7715 resistance area. As its Friday we may well see some profit taking across the board later given the rises this week. If the US markets do start to get bearish at any point then I feel that the FTSE100 will follow that move easily....

Above the 7714 resistance level then 7751 level remains in play being the recent high and would likely get a reaction if seen. Feels like it might be a struggle to get that high today though, as we also have R2 at 7732.

The 2hr chart remains bearish also, with the red coral at 7710 likely to be tested today.

Support wise, then the daily pivot and the 30m 200ema are at the 7680 area so the bulls would be keen to defend this, otherwise a slide down to the 7650 level would likely play out. That is the next main daily support level in play as well.

Below that then 7634 is the daily support and S2 and should this be tested then we will likely see a bounce here. It is also the second test of the daily EMA support.

Be a little bit more cautious today being Friday, though looks like we will get a rise and dip play out across the board.

Good luck today and have a great weekend.

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