The FTSE 100 is rallying today ahead of the important stimulus speech by Joe Biden. The index is trading at £6,770, which is slightly below this year’s high of £6,975. The focus will be on Tesco, Whitbread, Hays, and DuneIm that will publish their trading statements.
Tesco share price in focus: Tesco will be the top mover in the FTSE 100 today as the country will publish its trading statement. Economists believe that the company will report good numbers due to the robust retail sales in December.
Also, its online sales will likely provide much of this support. Tesco matters because it is the biggest retailer in the United Kingdom with a market cap of more than $33 billion.
Whitbread, the hotel and restaurant giant will also be in focus as is Hays, the recruitment company.
Homebuilders in focus too: Homebuilders will also be in focus today after Persimmon delivered its trading update yesterday. While the results were better than expected, its share price fell because of the potential slowdown.
In fact, data from the Royal Institute of Chartered Surveyors showed that the sales growth was starting to fade. The index declined to 65% from the previous 66%.
FTSE 100 technical outlook
The FTSE 100 index is trading at £6,770, which is slightly above yesterday’s low of £6,721. On the daily chart, the price is above the 50-day and 25-day exponential moving averages. It is also between the 61.8% and 78.6% Fibonacci retracement level.
Therefore, the index will likely continue rising as bulls target the next resistance level at £7,000. However, a drop below the 61.8% retracement level at £6,567 will invalidate this trend.
FTSE 100 chart