Breaking News
Investing Pro 0

10.1% CPI Inflation With FTSE100 Resistance At 7600

By FTSEDayTrader Limited (Nick Hilsden)Market OverviewAug 17, 2022 07:21
uk.investing.com/analysis/101-cpi-inflation-with-ftse100-resistance-at-7600-200531955
10.1% CPI Inflation With FTSE100 Resistance At 7600
By FTSEDayTrader Limited (Nick Hilsden)   |  Aug 17, 2022 07:21
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
UK100
-1.58%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Stocks rose in Asia on Wednesday amid speculation that China may roll out more stimulus to shore up its ailing economy and as some robust US earnings delivered a boost for sentiment.

The FTSE100 stalled at the 7560 resistance level and that remains the level to break for the push towards the 7600 level now. We have just had the CPI inflation data out, at 10.1%, above the estimate, however, the reaction on the FTSE100 so far is fairly muted. Was probably expecting worse!

For today, therefore, the bulls will be aiming to push up toward the 7593 level where have R2 for today and close to the round number at 7600. Above that then the R3 level of 7620 is next up, and we are also closing in on the top of the Raff channel top on the 10 day. That is at 7623 for today. 7645 is then daily resistance above that.

The S&P500 bulls will be aiming to break above that 4325 level that got the reaction yesterday and will be aiming for a push towards the 4349 level where we have R2 for today. That said, with the drop off 4325, the 2h chart has gone bearish and has 4320 as resistance now, so the bulls have their work cut out. They will need to defend the 4290 level again, otherwise, we will likely see a slide down to the 4258 level where we have the 30m 200ema.

The FTSE100 bears meanwhile will be aiming to take this down towards the 7520 level and lower. We could well see this hold though as we have the green 2h coral here and also the 30min 200ema which can be decent support/resistance.

Below 7520 and then we will be looking at 7502, and we are then at the bottom of the Raff channels, with both the 10&20d ones around the 7490 level.

It will be interesting to see if the market shrugs off the inflation figure. In theory, it lends weight to continued rises on interest rates. However, there is only so much they can do in terms of increasing it and not screwing too many of the masses who are being hit with falling wages and rampant inflation already. Going to be a lot of businesses struggling by the end of the year as revenue drops!

Today should see a dip and rise play out though and I would like to see any dip stall at the 7520 level to tee up a bush push towards the 7600 area. That said, a lot will depend on the USA and we will need the bulls to play ball for a push towards the 4350 level on the S&P.

Good luck today.

10.1% CPI Inflation With FTSE100 Resistance At 7600
 

Related Articles

Alla Makeyeva
Can The Pound Sterling Recover? By Alla Makeyeva - Sep 23, 2022 3

The Bank of England (BoE) has defied market expectations by raising interest rates by 50bps at its September meeting. Implied pricing showed that market participants were skewed...

10.1% CPI Inflation With FTSE100 Resistance At 7600

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email