. FTSE 100 News & Price Technical Analysis - 07 December 2022

FTSE 100 News & Price Technical Analysis – 07 December 2022

FTSE 100 News & Price Technical Analysis – 07 December 2022

08 Dec 2022

FTSE 100 expected to make steady progress at the open

The UK blue chip index struggles again ahead of next week’s key interest rate decisions

Leading shares remain in a holding pattern as investors await next week’s key interest rate decisions from the US Federal Reserve, the Bank of England and the European Central Bank.

“Interest rate hikes might cool inflation, but the reality is they’ll also cool just about everything else,” said Danni Hewson, AJ Bell financial analyst. “The question that’s been circling investors’ minds is how hard will the landing be and how long will it take for economies to get back on their feet?” 

With no straight answer to that question, the FTSE 100 has dipped 6.96 points to 7482.23 in early trading, with investors also unsettled by the prospect of a winter of discontent in the UK as hundreds of thousands of workers plan to go on strike.

The FTSE 100 is expected to open slightly higher after closing lower in the previous session when energy and oil stocks fell following downbeat Chinese trade data. IG futures data show the London index of blue-chip stocks opening up 6 points after closing down 32 points on Wednesday. “There appears to be little in the way of significant direction in markets at the moment, hardly surprising given next week’s looming central bank decisions, and we will probably continue to see further scratchiness in the upcoming days,” CMC Markets analyst Michael Hewson writes. The Federal Reserve announces its policy decision on Dec. 14 followed by the Bank of England and European Central Bank on Dec. 15.

FTSE 100 TECHNICAL ANALYSIS

DAILY CHART:

In the daily chart, FTSE 100 is currently trading in the up channel.

FTSE 100 is currently trading above 20 & 50 SMA

RSI is in buying zone which suggests bullishness and Stochastic is suggesting a downtrend.

FTSE 100 immediate resistance is at 7515.2 & its immediate support level is at 7467.2

HOW TO TRADE FTSE 100 INDEX IN THIS WEEK

FTSE 100 is moving in up channel; it will remain in up channel until any trend reversal. So, remain bullish on it.

TRADE SUGGESTION-BUY AT 7515.2, TARGET AT 7573.0, SL AT 7469.6