Technical Analyst, Saxo Bank
Summary: FTSE 100 broken below key support. FTSE 250 unfolding Shoulder-Head-Shoulder reversal pattern
UK100 and UK250MID cfd levels.
FTSE 100 has broken support at 7,850 this morning trading below 55 daily Moving Average and is set for a test of key support 7,708.
A close below 7,700 next strong support is at around 7,451 just around the 200 daily Moving Average. RSI is at the time of writing below 40 thus in negative sentiment. If closing below 40 down trend is further confirmed indicating lower levels for FTSE 100
To reversed this bearish picture at close above 7,975 is needed.
FTSE 250 Shoulder-Head-Shoulder is unfolding after breaking below the Neckline. Followed by a break below support at 19,317. There is SHS downside potential to around 18,500 illustrated by the vertical arrows.
RSI is at the time of writing below 40 thus in negative sentiment. If closing below 40 down trend is further confirmed indicating lower levels for FTSE 100
To reverse this bearish picture a close above 20,123 is needed.
UK250MID cfd: Similar picture. . Finding support at the 100 daily Moving Average but downside potential to 18,468. To reverse the this bearish scenario a close above 20,093.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.