. Daily Index Analysis - FTSE 100 Soars, Dow Hits 9-Day Rally, S&P 500 Peaks.

Daily Index Analysis – FTSE 100 Soars, Dow Hits 9-Day Rally, S&P 500 Peaks.

Daily Index Analysis – FTSE 100 Soars, Dow Hits 9-Day Rally, S&P 500 Peaks.

20 Dec 2023

Introduction:

In global indices, Asian markets surged following positive cues from Wall Street, with notable gains in the Shanghai composite and Nikkei 225. European stocks were optimistic about potential interest rate cuts, reflected in higher DAX and UK 100 futures. In the U.S., markets climbed as a Fed official fueled investor optimism for rate cuts.

Market In Focus for today – FTSE 100

In the UK, the FTSE 100 is witnessing an upward trend, mainly driven by persistent anticipations of interest rate reductions from the U.S. Federal Reserve and a dovish stance from the Bank of Japan.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7685.82 | Positive Crossover | Bullish
  • MA 20: 7629.25 | Positive Crossover | Bullish
  • MA 50: 7571.55 | Positive Crossover | Bullish

Simple:

  • MA 5: 7675.14 | Positive Crossover | Bullish
  • MA 20: 7626.46| Positive Crossover | Bullish
  • MA 50: 7550.23 | Positive Crossover | Bullish

RSI (Relative Strength Index): 68.74| Buy Zone| Bullish

Stochastic Oscillator: 55.87|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7747.6 | R2: 7836.0
  • S1: 7651.1| S2: 7564.7

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 7661.2 | Take Profit: 7757.6| Stop Loss: 7600.9.

CAC 40:

Following Tuesday’s closure, French stocks displayed a mixed performance. The Oil and gas, Basic Materials, and Healthcare sectors contributed to gains, while the Technology, Utilities, and Consumer Goods sectors experienced losses, resulting in a diverse market outcome.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7595.69 | Negative Crossover | Bearish
  • MA 20: 7570.38 | Positive Crossover | Bullish
  • MA 50: 7475.56 | Negative Crossover | Bearish

Simple:

  • MA 5: 7595.01 | Negative Crossover | Bearish
  • MA 20: 7584.06| Positive Crossover | Bullish
  • MA 50: 7459.09| Negative Crossover | Bearish

RSI (Relative Strength Index): 56.59| Buy Zone| Bullish

Stochastic Oscillator: 13.09|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 7658.2 | R2: 7783.9
  • S1: 7526.2| S2: 7400.5

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 7523.1 | Take Profit: 7667.6| Stop Loss: 7431.9.

DOW JONES:

Wall St extends its rally on Tuesday, The Dow surges over 200 points, marking its ninth consecutive day of gains.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37844.11 | Positive Crossover | Bullish
  • MA 20: 37389.16 | Positive Crossover | Bullish
  • MA 50: 36662.87 | Positive Crossover | Bullish

Simple:

  • MA 5: 37832.10 | Positive Crossover | Bullish
  • MA 20: 37347.05| Positive Crossover | Bullish
  • MA 50: 36543.26 | Positive Crossover | Bullish

RSI (Relative Strength Index): 82.07| Buy Zone| Bullish

Stochastic Oscillator: 46.34|BuyZone | Neutral

Resistance And Support Levels:

  • R1: 37943.50 | R2: 38726.18
  • S1: 37122.64| S2: 36320.88

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 37199.00 | Take Profit: 37943.50| Stop Loss: 36683.58.

S&P 500:

On Tuesday, the S&P 500 advanced, nearing its all-time high, buoyed by the Federal Reserve’s recent more accommodative stance on interest rates, which positively influenced the stock market.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4807.92 | Positive Crossover | Bullish
  • MA 20: 4747.10 | Positive Crossover | Bullish
  • MA 50: 4663.56 | Positive Crossover | Bullish

Simple:

  • MA 5: 4809.02 | Positive Crossover | Bullish
  • MA 20: 4740.35| Positive Crossover | Bullish
  • MA 50: 4642.91 | Positive Crossover | Bullish

RSI (Relative Strength Index): 77.97| Buy Zone| Bullish

Stochastic Oscillator: 81.52|BuyZone | Negative

Resistance And Support Levels:

  • R1: 4823.77 | R2: 4925.40
  • S1: 4717.30| S2: 4620.50

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 4734.24 | Take Profit: 4823.77| Stop Loss: 4671.32.

Elsewhere in the Indices Market:

Asian stock market rise Following positive cues from Wall Street.

The Shanghai composite is up at 1.03%. Overall, the Singapore MSCI is down 0.10% to 274.38. Over in Hong Kong, the Hang Seng Index is up 0.56% to 16,597.90. In Japan, the Nikkei 225 was up 1.37% to 33,675.94, while the Topix index was up 0.67% to 2,349.38. South Korea’s Kospi up 1.78% to 2,614.30. Australia S&P/ASX 200 is up 0.65% to, 7,537.90.

European stocks rose on optimism over interest rate cuts.

The DAX futures contract in Germany traded 0.14 higher, CAC 40 futures in France up 0.21% to 7,590.69 and the UK 100 futures contract in the U.K. up 1.35% to 7,741.45.

US markets climb as a Fed official gives investors more rate-cut optimism.

On Tuesday, U.S. stocks rose, fueled by recent comments from the Federal Reserve that sparked optimism about potential rate cuts.

Indexes: Dow up 0.68%, S&P 500- up 0.59%, Nasdaq up 0.66%.

Corporate News:

Netflix, Inc. (NFLX) is up 1.83% at 495.02, Tesla, Inc. (TSLA) is up 2.04% at 257.22, and Apple Inc. (AAPL) is up 0.54% at 196.94. Goldman Sachs Group Inc (GS) is up 1.61% at 382.45, and Morgan Stanley (MS) is up 1.28% at 91.92.

Key Economic Events & Data Release Today:

(GBP) CPI (YoY) (Nov) Actual 3.9%, Forecast 4.3%, Previous 4.6% at 12:30.

(USD) Existing Home Sales (Nov) Forecast 3.78M, Previous 3.79M at 20:30.

(EUR) German PPI (MoM) (Nov) Actual –0.5%, Forecast –0.2%, Previous –0.1% at 12:30.

(USD) CB Consumer Confidence (Dec) Forecast 103.8, Previous 102.0 at 20:30.

(USD) Core CPI (MoM) (Nov) Previous 0.3% at 19:00.

(USD) Building Permits (Nov) Forecast 1.470M, Previous 1.498M at 19:00.