FTSE 100 Technical Analysis – 08 September 2022
08 Sep 2022
FTSE 100: NEWS & Technical Analysis
European Stock Futures Edge Higher; ECB Meeting Looms Large
European stock markets are expected to open higher Thursday, boosted by the positive close on Wall Street lifting global sentiment, but gains are likely to be tentative ahead of the latest European Central Bank policy-setting meeting.
At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.5% higher, CAC 40 futures in France climbed 0.3%, and the FTSE 100 futures contract in the U.K. rose 0.2%.
The European Central Bank will be the market’s main focus Thursday, with the central bank widely expected to raise interest rates once more in an attempt to combat inflation rapidly approaching double figures.
Although a hike of 50 basis points is the most likely move, matching July’s increase, with inflation at record levels and the cut in Russian gas supply pushing energy prices even higher, the case is strong for the ECB to be even more aggressive and deliver its biggest ever rate hike of 75 basis points.
That said, the central bank faces a balancing act, with economic activity in the Eurozone already slowing significantly due to the ongoing energy crisis, pointing to a recession later in the year.
FTSE 100 Technical Analysis: Daily Chart
In the daily charts, FTSE 100 is trading in an up channel. FTSE 100 is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 7185.50 & the resistance level is at 7313.50.
FTSE 100 INDEX will trade in up channel until there is trend reversal.
How to Trade FTSE 100 INDEX this Week:
FTSE 100 INDEX will follow the uptrend until their trend reversal. So, remain bullish on FTSE 100 INDEX.