FTSE 100 Momentum Report: Holding Strong at 7,655.04
17 Oct 2023
FTSE stays up as a defensive gain.
The FTSE was up 0.3% at 7,655.04.
Russ Mould, who serves as the investment director at AJ Bell, commented, “Contributing to the positive performance of UK stocks were the latest job figures, which revealed a deceleration in wage growth. This theoretically reduces the likelihood of the Bank of England hastily increasing interest rates.”
Earlier data from the Office for National Statistics showed a slight moderation in the growth of basic wages in August.
In the three months leading to August, average earnings, excluding bonuses, increased by 7.8% compared to the previous year, marking a decrease from the upwardly revised 7.9% growth reported in the preceding month. Economists had anticipated that the growth rate would remain at 7.8%.
The FTSE 100 experienced a marginal uptick as the week commenced on Monday. This increase was propelled by a surge in stocks connected to commodities, influenced by growing concerns related to the conflict in the Middle East. The index initiated the week at 7,609.58, with initial advances in top-tier stocks eventually subsiding, resulting in minimal overall market changes.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
FTSE 100 is currently trading within an up channel.
FTSE 100 is positioned above all Moving Averages (SMA).
The Relative Strength Index (RSI) is in the buying zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 7660.1
Immediate support level: 7599.5
HOW TO TRADE FTSE 100
The FTSE experienced a significant upward movement but then retraced back to the 61.8% Fibonacci level, where it found support and resumed its upward trajectory. Currently, the price is approaching a critical resistance area, and if this zone is breached, we may anticipate further upward movement.
TRADE SUGGESTION- STOP BUY– 7672.45, TAKE PROFIT AT- 7763.58, SL AT- 7611.66.