Index Analysis Report With Charting Trends – 06 September 2023
06 Sep 2023
After a decline on Wall Street, shares were largely lower in Asia on Wednesday as traders returned from a long holiday weekend.
The Shanghai composite is up at 0.12%. Overall, the Singapore MSCI is down 0.68% to 281.43. Over in Hong Kong, the Hang Seng Index is down by 0.04% to 18,449.28. In Japan, the Nikkei 225 was up 0.62% to 33,241.02, while the Topix index was up 0.62% to 2392.53. South Korea’s Kospi down 0.73% to 2,563.34. Australia S&P/ASX 200 is down 0.78% to, 7257.10.
European stock lower, weak German manufacturing orders weigh
The DAX futures contract in Germany traded 0.50% lower, CAC 40 futures in France down 0.96% to 7,184.75, and the UK 100 futures contract in the U.K. down 0.87% to 7,373.44.
Yields Rise as U.S. Stocks Decline Due to Inflation Fears
On the first trading day of the week, the major US indexes fell, and bond yields increased, leaving investors in the US with a half-empty glass. The Nasdaq fared the best of the three, dropping just 0.08% at the close. The Dow fell by 0.56%, the S&P by 0.42%, and the S&P 500 by 0.42%. The US 10-year yield increased by 9bps to 4.26%, reaching its highest level in more than a week, while the short-term rate-sensitive 2-year increased to 4.97%.
Corporate News: Microsoft (MSFT) is up 1.46% at 333.45, Apple (AAPL) is up 40.13% at 189.90, and Tesla (TSLA) is up 4.68% at 256.48. JPMorgan Chase & Co (JPM) down 1.10% at 145.20.
FTSE 100 TECHNICAL OVERVIEW:
Exponential Moving Average
- EMA 5: The 5-day EMA stands at 7418.29, indicating a Sell signal.
- EMA 20: The 20-day EMA is at 7433.45, signaling a Sell sentiment.
- EMA 50: The 50-day EMA currently sits at 7429.14, suggesting a Sell indication.
Simple Moving Average
- SMA 5: The 5-day SMA shows a value of 7425.38, reinforcing the Sell recommendation.
- SMA 20: With a value of 7457.81, the 20-day SMA also supports a Sell sentiment.
- SMA 50: The 50-day SMA registers at 7384.70, affirming a Sell indication.
RSI (Relative Strength Index)
The RSI, calculated over a 14-day period, stands at 42.45 signifying a Neutralsignal.
The %K value of the Stochastic Oscillator suggests a Negative stance.
Resistance And Support Levels
- Resistance: The resistance level is observed at 7430.3
- Support: The support level is identified at 7355.2
Summary And Trade Suggestions
In summary, the technical analysis of FTSE 100 points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.
- Entry Point: 7317.6
- Take Profit: 7206.9
- Stop Loss: 7396.9