Global Indices Update:
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FTSE 100 rallies on better-than-expected BP earnings
The FTSE 100 broke out of its 7,690 to 7,600 sideways trading range and did so to the upside on better-than-expected BP earnings and as the oil giant plans to repurchase $3.5 billion of shares. The index has so far risen to 7,710 in out-of-hours trading and is gunning for the July and September highs at 7,723 to 7,747.
Minor support below 7,690 lies between the 1 and 5 February highs at 7,674 to 7,669 ahead of the 26 January high at 7,653.
FTSE 100 Daily Chart
Source: IG, ProRealTime, Prepared by Axel Rudolph
CAC 40 resumes its ascent
The French CAC 40 stock index resumed its ascent on Tuesday amid solid earnings and strong Chinese and US stock markets with the December peak at 7,653 being back in sight. If overcome, the index’s record high at 7,704 will be back in view as well.
Minor support can be found around Monday’s 7,618 high and along the January-to-February uptrend line at 7,600.
CAC 40 Daily Chart
Source: IG, ProRealTime, Prepared by Axel Rudolph
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The Nikkei 225 skips back to 36,000 zone
The Nikkei 225 looks to be in the process of forming at least an interim top with it having slid back to the 36,000 region, just like last week when it acted as support.
Tuesday’s slip through this year’s uptrend line at 36,230 indicates that it is likely that the late January low at 35,686 is to be revisited. If so, it’ll probably give way as the past couple of weeks’ upward correction to last week’s 36,511 high represents an Elliott Wave abc zigzag correction which should be followed by another down leg. This could then take the Nikkei 225 to its mid-January low at 35,312, a daily chart close below which would confirm a top being formed.
This bearish view will remain in play while last week’s high at 36,511 isn’t overcome on a daily chart closing basis. If so, the January record high at 37,003 would be back in focus.
Minor resistance can be seen along the breached 2024 uptrend line, now because of inverse polarity a resistance line, at 36,230.
Nikkei 225 Daily Chart
Source: IG, ProRealTime, Prepared by Axel Rudolph