Technical analysis for FTSE 100 for 27th March 2024
The FTSE 100 ended higher on Tuesday helped by retailers' shares as investors looked to key U.S. inflation data later in the week for more clues on the Federal Reserve's interest rate outlook.
The blue-chip FTSE 100 closed 0.2% higher, recovering from a weak start to the session after mixed messages from Fed officials on Monday spurred worries across global markets on the timeline of monetary policy easing.
The domestically-oriented FTSE 250 jumped 0.8% to a fresh one-year high led by 9.5% surge in Petershill Partners Plc after the investment firm said it was considering launching a tender offer to repurchase up to $100 million shares.
The personal goods index, beverages and medical equipment also posted strong sector gains.
After the FTSE 100 index touched a one-year high last week following dovish signals from major central banks, market focus will now shift to the U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, due on Friday.
Markets across the U.S., Europe and UK will be closed for the Good Friday holiday.
Asia
Japanese stocks advanced amid a weakening yen on Wednesday while Chinese stocks slipped, with overall regional trading lacking strong direction in a holiday-shortened week that ends with a key reading of U.S. inflation.
Japan's Nikkei gained 0.93% to 40,775.62 as of 0155 GMT, heading back towards the all-time high of 41,087.75 reached last Friday. The yen edged toward the 152-per-dollar mark that some see as the red zone for central bank intervention, after Japanese authorities stepped in at 151.94 in October of 2022. The yen was last about 0.1% weaker at 151.73
The choppy, directionless trading reason is that two key events - the release of the U.S. Federal Reserve's favoured inflation indicator and public comments from Fed Chair Jerome Powell - come on Friday, when most markets are closed for a holiday.
FTSE 100 technical analysis for today, 27th March 2024
With the shortened week it's all been a bit lacklustre so far though the bulls are defending the 7900 area still. The first test of the green coral on the 2h at 7890 held yesterday, but the 2h chart is actually bearish with resistance at the 7964 level. If we get a rise towards this then we could see it falter here and therefore that level is worth a short.
That also coincides with R2 for today at 7961, and just below the key fib at 7968 so is looking fairly key. Should the bulls break above this though then the 7988 R3 level and of course 8000 just above. The daily Raff channels continue to head up, though there will be some caution creeping in now ahead of the US inflation news on Friday.
Support wise the daily pivot is first up at 7915, along with a further test of the 2h coral at 7926. it would be good to see this hold for a rise towards the 7965 area. Below the 7915 daily pivot the 7888 area is the 30m 200ema and also around S1 at 7895.
If the bears were to break this thought then ultimately we may well be on for a slide down as far as the next key daily support at 7833. A long here is worth a go as it's also the bottom of the 10d Raff channel.
No major news today but we have UK GDP tomorrow, and then the eagerly anticipated US inflation on Friday. With markets closed Friday we may see some caution tomorrow.
So generally it's looking like the 7965 level is key today so keep an eye on that. Hopefully its not quite as static as yesterday but it's getting in holiday mode....
Good luck today.
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