Technical analysis for FTSE 100 for 11th January 2024
The FTSE 100 fell on Wednesday, with Sainsbury's sliding after the supermarket group disappointed investors who expected a profit upgrade, while insurers tumbled after a media report suggested regulators could decide to investigate premium finance products.
The blue-chip FTSE 100 slid 0.4%, with shares of Sainsbury's dropping 6.3%, making it the biggest percentage faller in the index.
Investors were disappointed that Britain's second-biggest supermarket group failed to upgrade its full-year outlook despite a 7.4% increase in its underlying sales in the key Christmas quarter.
Bank of England Governor Andrew Bailey said he hoped that the recent fall in the cost of mortgages would continue but said that he did not want to comment on the outlook for monetary policy.
Stocks in Japan and Hong Kong led gains in Asia while the dollar fell as investors awaited US inflation data that will help clarify the path for Federal Reserve policy.
Asian stocks rose on Thursday ahead of U.S. inflation data that could influence the Federal Reserve's thinking on rate cuts, while the crypto world got a boost after exchange-traded funds (ETFs) to track bitcoin were approved in the United States.
FTSE 100 technical analysis for today, 11th January 2024
Another hold of the 7640 level yesterday but a decent enough drop off the 7685 resistance played out. The bulls should build on this rise that's taking place so buy the dips once again, with 7640 decent support till it isn't. We then have the 7615 level below that as the next key support.
The bulls will be looking for a climb past 7700 and we have R3 at 7719 for today, but may well see an overshoot towards the daily resistance level at 7732.
If we see that then a short here is worth a go.
Todays big news is of course the US inflation data at 1330, with a drop down to 3.8% forecasted.
Above 7732, which we could do if the bulls really go for it then 7765 is the next level to look for.
Good luck today.
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