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FTSE 100 Technical Outlook - 18 September 2023

By Capital.com News

06:55, 19 September 2023

Any material provided is for information purposes only and is not investment advice. Any opinions that may be provided are not a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided. If you rely on the information on this page then you do so entirely on your own risk.

In prior technical outlooks, we highlighted the importance of staying alert in sleepy markets, and last Thursday’s developments on the FTSE 100 serve as a prime illustration of this principle.

Having spent the first half of the week coiled and consolidating, the FTSE burst into life on Thursday – breaking and closing above multiple levels of resistance and posting its biggest day of gains since March.

Thursday’s rally was fuelled by the European Central Bank (ECB) confirming the end of its rate hike cycle. This fed into a surge in commodity prices which propelled the FTSE 100 higher as the index is heavily weighted towards energy and mining stocks.

The rally brought the FTSE back to the levels it had reached during the summer swing highs—an area we had previously pointed out as a zone of resistance (refer to the chart below). On Friday, market participants reacted to this resistance by closing out positions in anticipation of the weekend.

It's important to highlight that even though the FTSE has started the new week with a somewhat subdued performance, the prevailing short-term momentum remains bullish, thanks to the gains seen on Thursday.

FTSE 100 Daily Candle Chart:

snapshot

Support

BTC/USD

65,835.35 Price
-0.120% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Gold

2,416.37 Price
+0.270% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 21:00 (UTC)
Spread 0.30

ETH/USD

3,444.48 Price
-1.220% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.61 Price
+0.190% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168
  • S1 = 7,500
  • S2 = 7,370
  • S3 = 7,227

Resistance

  • R1 = 7,724
  • R2 = 7,941
  • R3 = 8,045

UK Sector Snapshot

snapshot

Risk management:

Support and resistance levels should be used as a guide and are not guaranteed to hold.

We have a busy week ahead on the economic calendar, key events include; Eurozone inflation data on Tuesday morning, UK inflation on Wednesday morning, the Federal Open Market Committee interest rate announcement on Wednesday, and the Bank of England rate decision on Thursday.

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Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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