Insights and Analysis: FTSE 100 News and Technical Breakdown
22 May 2023
After initial advances, the FTSE 100 declines; a muted start is anticipated
Blue-chip stocks in London are trading relatively unchanged, although Dechra Pharmaceuticals is down after issuing a profit warning.
Little changed in the FTSE 100 following a strong start.
The FTSE 100 has increased 25.44 points to 7,782.31 as the day has continued a good note.
“The continuation of positive momentum comes ahead of important talks in the US,” Hargreaves Lansdown’s Sophie Lund-Yates stated. Today’s scheduled meeting between President Biden and Republican House Speaker Kevin McCarthy will center on increasing the debt ceiling.
“This occurs just two weeks prior to a significant deadline. Markets will continue to be extremely sensitive, but it seems likely that a solution will be found before boundaries are crossed.
Ahead of additional discussions in the US to break the impasse in the debt ceiling talks, the FTSE 100 has steadily increased in early trading on Monday.
“While the likelihood of what would be a financially catastrophic default is considered low, investors remain on edge and will continue to be so the longer the talks progress,” said Richard Hunter, head of markets at Interactive Investor.
According to data released on Monday, UK home prices reached a new record high in May as the housing industry continued to defy gloomy predictions at the beginning of the year.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading below 5&50 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Immediate resistance is at 7788.8 & its immediate support level is 7738.1
HOW TO TRADE FTSE 100 IN THIS WEEK
The FTSE 100 has resumed its upward trend after a brief retracement. Price is currently trading in a zone of resistance; if it breaks through this zone, price will likely move upward once more.