FTSE 100 daily analysis for trading today 4th July 2023
Today's FTSE 100 daily analysis - Most Asian stocks fell on Tuesday, while the U.S. dollar and oil steadied, as investors held safe ranges awaiting more clues on whether central banks will continue their aggressive interest rate hikes. The rally in global shares paused Tuesday amid lacklustre trading as US futures fluctuated and Japanese equities weighed down a gauge of Asia stocks. The Australian dollar declined after the central bank kept interest rates unchanged while the yield on the nation’s policy-sensitive three-year bond reversed an earlier gain. Australian equities rose.
Market conditions were also subdued heading into the U.S. Independence Day public holiday on Tuesday, with most of Wall Street closed. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1%, by Tuesday mid-morning.
U.S. S&P 500 E-mini stock futures slipped 0.1% in Asian trade. Wall Street stock indexes ended Monday’s shortened session up slightly along with Treasury yields. In coming days, investors are watching out for a mixed bag of economic data ahead of second-quarter earnings, while uncertainty remains over the Federal Reserve’s policy path.
FTSE 100 daily analysis for trading
The bulls managed a bit of a bounce off the 7525 level yesterday but then faltered as we are in the US holiday period to start the week. Today is their Independence Day break as well so we will probably have more of the same. Initially today we have support at the 7518 area with the 30m 200ema here, and I would quite like to see this hold initially for a rise towards the new 2h resistance level at the 7540 level.
7540 is the red 30m coral, along with the 2hr Hull MA here, so we may well see the bulls falter here. The bears will of course be keen to cement in a bear Tuesday today, and having had the bulls fail to push past the 25ema on the daily yesterday at the 7560 level will be feeling a bit stronger once again.
We may well stay within a fairly tight range with the USA closed today.
Above the 7540 level then 7560 once again is the next level of note, with that 7587 still showing higher up. Should we see that then a short here is worth a go.
Initial support below that 200ema is at the 7507 S1 level and as it's also near the round number we may see a bit of a defence of this. A break though and then that S2 level at 7486 will come in play and probably be seen.
7483 is also the key fib support for today so, should the 7507 break today and we do slide that that also lends weight to that level holding for a bounce.
The Dax40 2h chart has also gone bearish with 16150 resistance on that so keep an eye on that area.
Chart wise for the S&P500, 4450 is showing as support and worth a long in this area for a push higher later this week. It's setting up a bit of a bull flag on the 2h chart as well as you can see here.
So, bit of a flat one today I expect but keep an eye on the key levels once again. Good luck today!
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