. FTSE 100 News Forecast & Technical Analysis - 12 April 2023

FTSE 100 NEWS FORECAST & TECHNICAL ANALYSIS – 12 APRIL 2023

FTSE 100 NEWS FORECAST & TECHNICAL ANALYSIS – 12 APRIL 2023

12 Apr 2023

The FTSE 100 responds favourably to US inflation statistics

The FTSE 100 is up during the opening hour of trade, climbing for the fourth day in a row, adding 34 points to 7,821.

The larger FTSE 250 index dropped 4 points to 18,962, remaining stable.

Shell, Centrica, and SSE are energy businesses that continue to trade toward the top of the index. Crude oil is slightly higher at US$81.67 per barrel, while Brent oil and natural gas are also stable.

Steel rebar futures dropped below 4000 CNY per tonne, the lowest level since 5 January, because of sluggish demand during China’s busiest construction season. Miners continued to push the index down. 

The stock prices of Anglo-American, Fresnillo, Rio Tinto, and Endeavour Mining all remained negative.

All eyes are on economic statistics from across the pond today because there isn’t much financial news slated for the UK.

Trading Economics predicts that overall inflation, which includes volatile prices for food and gasoline, will drop from 6% to 5.3%.

Analysts claim that UK investors have maintained their caution in anticipation of US data, which may easily set the tone for the Bank of England’s monetary policy.

With gold up 0.5% in the most recent day to US$2,013 per ounce, it is obvious that market uncertainty is benefiting haven assets.

Even a few months ago, the inflation rate was expected to be stickier. Although worldwide inflation has decreased, this is primarily due to the substantial fall in the cost of food and energy.

But in many nations, core inflation, which excludes the erratic energy and food components, has not yet peaked.

It is anticipated that UK inflation will decrease from 9.1% last year to 6.8% this year and 3% in 2024.

FTSE 100 TECHNICAL ANALYSIS DAILY CHART:

FTSE 100 is currently trading in up channel.

FTSE 100 is currently trading above all SMA.

RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.

Immediate resistance is at 7852.8 & its immediate support level is 7803.4

HOW TO TRADE FTSE 100 IN THIS WEEK

FTSE 100 is currently moving up in a channel; it is currently trading at key resistance zone and it broke the previous day high also , if it breaks the resistance zone and maintains above the it, we may experience upside.

TRADE SUGGESTION-BUY AT 7852.8, TARGET AT 7949.43, SL AT 7782.25