In today’s indices outlook, we take a look at the technical setup for Stoxx 600, Stoxx 50 and the FTSE 100, with Geoff Wilkinson, Associate at Linear Investments.
Stoxx 600: Important to stay within the trend channel
Wilkinson takes a look at the technical charts for the Euro Stoxx 600, noting the key levels on the index. A minor resistance could be seen at 393.60 and then the major downtrend around 395. A double support area could be found around 379. Draghi’s speech on Thursday remains a key risk.
Stoxx 50: Clear close above 3530 to be bullish
Wilkinson mentions that the Stoxx 50 remains a good indicator to determine where European equities are headed. On the technical outlook, he says that index is near a major uptrend resistance. He believes that the next catalyst higher for the index would likely be a break above 3530. The support could be found at 3460.
He further notes that the price action has been constructive on the index since October, and dips below the trendline have been bought.
FTSE 100: 6450 key for direction
Looking at technical charts for the FTSE 100, Wilkinson notes that the UK equity market index broke through a major downtrend, and remains currently supported around the 6330 level. The index is seen stalling around the 6400 level, which is more of a psychological level.
He highlights 6450 as being a key fib level, and believes that Draghi will have to say something exceptionally positive to push the market higher heavily.
We are not authorised by the Financial Conduct Authority of England and Wales. The information and/or data on this website is provided by us and any data providers which may be used by us for your general information and use only and is not intended for trading purposes or to address your particular financial or other requirements. In particular, the information and/or data on the website:
(1) does not constitute any form of advice (financial, investment, tax, medical, legal, spread -betting or otherwise); and (2) does not constitute any inducement, invitation or recommendation relating to any of the products listed or referred to; and (3) is not intended to be relied upon by you in making (or refraining to make) any specific investment, placing any bet or making any other decision; and (4) has not been issued or approved by Tip TV for the purposes of section 21 of the Financial Services and Markets Act 2000 (as amended from time to time).
Opinions expressed by speakers in the videos, writers of the blogs are only opinions and not expert advice. These opinions do not necessarily agree with those held by Tip TV, its directors, agents or employees who disclaim any intent to make betting, securities or securities markets recommendations. The value of investments and the income derived from them may fall as well as rise. APPROPRIATE EXPERT INDEPENDENT ADVICE SHOULD BE OBTAINED BEFORE MAKING ANY INVESTMENT, PLACING ANY BET OR MAKING ANY OTHER DECISIONS.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.