Technical analysis for FTSE 100 for 12th September 2023
The FTSE 100 closed higher after a choppy trading session. The blue-chip index closed up 0.25pc at 7,496.87. Meanwhile, the FTSE 250 midcap index finished 0.32pc higher at 18,522.44.
Asian stock markets edged up on Tuesday while comments from central banks in China and Japan interrupted the dollar's ascent, giving traders a breather ahead of U.S. inflation data that could influence when or if the Federal Reserve raises rates further.
MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.12%. Japan's Nikkei rose 0.61%, with markets looking to U.S. inflation data and this week's European Central Bank meeting to set interest rate expectations and the mood.
Due on Wednesday, markets are expecting the U.S. figures to show annualised core inflation falling to 4.3% in August though the headline number is seen ticking up to 3.6%.
FTSE 100 technical analysis for today, 12th September 2023
Nice level to level moves yesterday with the drop off the 7550 level and then the bounce off the 7465. For today we may well see a bear Tuesday kick in later, and I am looking at a rise possibly to the 7595 resistance level today. If we see that then I think that this will be a decent shorting level.
Prior to that though we have the potential double top with yesterday at 7550 and this is also R1 for today. As such we may well see a reaction here to start with though the bulls will certainly be trying to build on yesterday and once again defend the 7500 level.
Above 7595 then the 7635 R3 level would be the next one of note, and in fact aligns with daily resistance at that level too. Not sure that we will get a test of that today, more likely towards the end of the week.
On the support side of things then we have 7500 initially and 7508 for the daily pivot. We could see this hold for today, and a short the rally day play out.
Should the bears break 7500 then the 7460-7470 area is key support below that. The level from yesterday and also the S1, key fib and 30m 200ema all here. I would expect that to hold if it gets tested, however a break of that will likely lead to a drop down to the 7423 S2 level. Will it get that bearish today?
The unemployment rate has just been released while I am writing this. Headline indicators for the UK labour market for May to July 2023 show:
- employment was 75.5%
- unemployment was 4.3%
- economic inactivity was 21.1%
It may well be a similar pattern on the Dax40 and S&P500 today with the rise and dip playing out. I am looking at the 15918 and 4507 resistance levels respectively for them.
Good luck today.
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First reaction at 7550 today… next one likely to break higher