LATEST NEWS:-FTSE 100 PRICE FORECAST & LATEST TECHNICAL ANALYSIS – 20 APRIL 2023
20 Apr 2023
FTSE is down but performs better than its European peers.
The FTSE is still declining, but it is beating its major European competitors.
The Cac 40 in Paris and the Dax in Frankfurt are performing worse, down 0.4% and 0.8%, respectively, while London’s lead index is down 0.2%.
This is true even if official statistics released on Thursday revealed that wholesale price inflation in Germany slowed down more quickly than anticipated last month, with the annual pace more than halving.
German producer price inflation decreased from 15.8% in February to 7.5% on an annual basis in March, according to Destitos. 9.8% was what economists had anticipated to see.
The Footsie has dropped even more, down 18 points to 7,881 as investors assess the most recent profits amid concerns that higher interest rates may slow the economy’s expansion.
The “next couple of weeks is really key because this depends on global risk appetite and the Fed,” he added.
“And earnings – the next two weeks are key with a deluge of mega Cap tech and Dow components coming down the pipe – the banks and Netflix/Tesla have only been the appetisers; the main course is served up over the next fortnight,” the speaker noted.
According to the head of the Dutch central bank, the European Central Bank may need to hike interest rates in June and July after the increase next month.
On May 4, the ECB is largely anticipated to increase interest rates once more, although it is uncertain what course it would follow given the global outlook for central banks at the time.
Markets in the UK have priced in a 25% basis point rise at the next Monetary Policy Committee meeting with traders betting on a higher peak of closer to 5%.
The FTSE 100 is expected to edge lower in early exchanges following a lacklustre showing in the US overnight after a mixed bag of earnings.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading above 20&50 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting no trend.
Immediate resistance is at 7898.2 & its immediate support level is 7866.6
HOW TO TRADE FTSE 100 IN THIS WEEK
The FTSE 100 was initially moving in an upward channel, but it faced resistance at a particular level after which the price started falling. Currently, it is trading at a support level, and if it holds, we can go back upward from there.