. Daily Index Analysis - FTSE 100 rises before key Bank of England speeches.

Daily Index Analysis – FTSE 100 rises before key Bank of England speeches.

Daily Index Analysis – FTSE 100 rises before key Bank of England speeches.

20 May 2024


Introduction:

Global stocks rise on positive economic signals. Asian markets rally on hopes of interest rate cuts, with gains across major indices. European futures climb as UK inflation shows signs of cooling. US futures inch higher following the Dow Jones’ record close and positive investor sentiment.

Market In Focus for today – Dow Jones

Dow futures edge higher after a record-breaking close above 40,000.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 40040.61 | Positive Crossover | Bullish
  • MA 20: 39850.02 | Positive Crossover | Bullish
  • MA 50: 39413.41 | Positive Crossover | Bullish

Simple:

  • MA 5: 40076.09 | Positive Crossover | Bullish
  • MA 20: 39862.37| Positive Crossover | Bullish
  • MA 50: 39202.75 | Positive Crossover | Bullish

RSI (Relative Strength Index): 77.46| Bullish Zone| Positive


Stochastic Oscillator: 70.18| Buying Zone | Positive

Resistance And Support Levels:

  • R1: 40325.45 | R2: 40727.77
  • S1: 39789.02| S2: 39252.60


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 39759.22 | Take Profit: 40325.45| Stop Loss: 39416.51.

S&P 500:

Deutsche Bank raises its year-end target for the S&P 500 to a Street-high of 5,500.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5322.64 | Positive Crossover | Bullish
  • MA 20: 5300.04 | Positive Crossover | Bullish
  • MA 50: 5243.57 | Positive Crossover | Bullish

Simple:

  • MA 5: 5326.84 | Positive Crossover | Bullish
  • MA 20: 5300.40| Positive Crossover | Bullish
  • MA 50: 5217.70 | Positive Crossover | Bullish

RSI (Relative Strength Index): 73.5 | Bullish Zone| Positive


Stochastic Oscillator: 37.32 | Selling Zone | Negative

Resistance And Support Levels:

  • R1: 5348.07 | R2: 5448.40
  • S1: 5247.74| S2: 5152.98


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5228.23 | Take Profit: 5328.56| Stop Loss: 5169.71.

FTSE 100:

FTSE 100 extends gains ahead of significant Bank of England speeches.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8431.88 | Negative Crossover | Bearish
  • MA 20: 8414.04 | Positive Crossover | Bullish
  • MA 50: 8313.04 | Positive Crossover | Bullish

Simple:

  • MA 5: 8436.09 | Negative Crossover | Bearish
  • MA 20: 8434.05| Positive Crossover | Bullish
  • MA 50: 8307.98 | Positive Crossover | Bullish

RSI (Relative Strength Index): 59.08| Buy Zone| Bullish


Stochastic Oscillator: 15.48| Selling Zone | Positive

Resistance And Support Levels:

  • R1: 8485.54 | R2: 8550.00
  • S1: 8364.30| S2: 8258.71


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 8292.2 | Take Profit: 8457.2| Stop Loss: 82210.

Euro Stoxx 50:

European markets saw a modest rise in morning trading on Monday following a strong streak of gains that faltered towards the end of the previous week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5073.12 | Positive Crossover | Bullish
  • MA 20: 5066.32 | Positive Crossover | Bullish
  • MA 50: 5037.43 | Positive Crossover | Bullish

Simple:

  • MA 5: 5077.8 | Negative Crossover | Bearish
  • MA 20: 5079.65| Positive Crossover | Bullish
  • MA 50: 5019.74 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.66| Bullish Zone| Positive


Stochastic Oscillator: 35.15| Selling Zone | Positive

Resistance And Support Levels:

  • R1: 5093 | R2: 5141
  • S1: 5034| S2: 4932


Overall Sentiment: Neutral | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5040 | Take Profit: 5116| Stop Loss: 5005.


Elsewhere in the Indices Market:


Asian stocks rally amid growing expectations of rate cuts.

The Shanghai composite is up at 0.54%. Overall, the Singapore MSCI up 0.22% to 311.52. Over in Hong Kong, the Hang Seng Index up 0.42% to 19,636.22. In Japan, the Nikkei 225 up 0.73% to 39,069.68, while the Topix index was up 0.82% to 2768.04. South Korea’s Kospi up 0.64% to 2,742.14. Australia S&P/ASX 200 up 0.63% to, 7,863.70.

European stocks climb as UK inflation cools faster than EU and US.

The DAX futures contract in Germany traded 0.47 higher, CAC 40 futures in France up 0.54% to 8,211.87 and the UK 100 futures contract in the U.K. up 0.28% to 8,443.48.

US futures edge higher after the Dow surpasses 40,000 for the first time.

US stocks edged higher on Monday after the Dow closed above 40,000 for the first time, driven by a surge in copper prices and anticipation of Nvidia’s upcoming earnings report.

Indexes: Dow down 0.10%, S&P 500- down 0.21%, Nasdaq down 0.26%.


Corporate News:

Netflix, Inc. (NFLX) up 1.73% at 621.10, Tesla, Inc (TSLA) up 1.50% at 177.46, Apple Inc. (AAPL) up 0.16% at 189.87. Goldman Sachs Group Inc (GS) up 0.69% at 467.72, Morgan Stanley (MS) up 0.64% at 100.22.



Key Economic Events & Data Release Today:

(CNY) Industrial Production (YoY) (Apr) Forecast 5.5%, Previous 4.5% at 07:30.

(EUR) CPI (YoY) (Apr) Forecast 2.4%, Previous 2.4% at 14:30.