Technical analysis for FTSE 100 for 3rd May 2024
Britain's blue-chip share index rose on Thursday as shares of Shell and Standard Chartered jumped after strong results, while investors also took comfort from the Federal Reserve dismissing the possibility of more interest rate hikes.
The blue-chip FTSE 100 ended up 0.6% to 8,172.15 points, hovering close to its record high of 8,199.95 points hit on Tuesday. The mid-cap FTSE 250 also gained 0.6%.
Meanwhile, the Fed kept interest rates steady as expected on Wednesday and Chair Jerome Powell suggested future policy moves could be to keep holding or cutting rates rather than a hike.
The Bank of England is set to meet next week. Money markets have priced a September rate cut by the BoE and chances of a second move by the end of the year are seen as little more than 50-50, down from six reductions priced at the start of the year.
Asia
Asian stocks rallied on Friday after Apple's record $110 billion share buyback plan lifted the tech sector, while the yen put more distance from recent 34-year lows to cap a tumultuous week that saw suspected interventions from Tokyo.
With markets in Japan and mainland China closed on Friday, regional trading activity is likely to be subdued as traders look ahead to the U.S. nonfarm payrolls data later in the day.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5% and was set for a second straight week of gains. Hong Kong's Hang Seng Index spiked 2% higher, on course for a 5% gain for the week.
USA
U.S. stocks ended higher on Thursday, with tech heavy Nasdaq advancing 1.5% buoyed by chip stocks.
In after-market hours Apple reported quarterly results and forecast that beat modest expectations and unveiled a record share buyback program, sending its stock up almost 7% in extended trade.
U.S. economic data on Thursday also showed the labour market remains tight, ahead of key government payrolls data due later on Friday. Economists polled by Reuters forecast 243,000 jobs, with estimates ranging from 150,000 to 280,000.
In commodities, U.S. crude rose 0.39% to $79.26 per barrel and Brent was at $83.98, up 0.37% on the day.
FTSE 100 technical analysis for today, 3rd May 2024
It's NFP Friday so keep your guard up as it can be odd, and we also have a UK bank holiday on Monday so no email that day. As such we may well see some profit taking at the close of business on the FTSE100 today, especially as we have finally tested the 8205 daily resistance level overnight. Not much of a reaction so far, but that should bring the next daily levels into play at 8225 and 8300.
We may well see an initial drop this morning down to the 8170 level where we have decent support, with the daily pivot, 2h coral and Hull MA all here. I would like to see this hold if its tested as that would then bode well for some further upside on the FTSE100 over the next few sessions.
If the bears break 8170 though then 8145 is the next level of note with 8125 below that. We also have S1 at 8138 dissecting those so again, in theory at least, there should be support in this area.
With NFP (data at 1330) forecasted to have dropped slightly to 238k, from 303k previously (unemployment remaining at 3.8%) we may well see any beat of that forecast help the bulls. As always with NFP watch for the spikes/volatility at the release. We also have services PMI at 15:00, forecasted at 52.
Resistance wise, in addition to the daily levels mentioned above 8227 is also the key fib for today, and 8251 for R2. The bulls will certainly be keen to try and break (and hold) above the 8200 level ahead of the long weekend.
The 2h charts for the S&P500 and the Dax40 are now also positive and have support at 5045 and 17885 respectively, so again, it would be good to see any drop to these levels to hold and end the week on a positive note. Apple's results also helped the S&P500 recover from that 5010 level yesterday, along with the double bottom bounce there with Wednesday's low.
Not much more to say, don't forget NFP at 1330.... good luck today and enjoy the long weekend!
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