Technical analysis for FTSE 100 for 9th November 2023
Yesterday the FTSE 100 dropped 0.1pc, while the FTSE 250 was up 0.5%.
Stocks in Asia advanced, after US equities registered the best winning streak in two years and strength in Treasuries highlighted expectations for peaking interest rates. The MSCI Asia Pacific Index rose 0.5%, buoyed by increases in Australia, Japan and South Korea. The moves followed S&P 500’s 0.1% gain Wednesday, its eighth consecutive advance and best run since November 2021. US stocks futures were steady in Asia.
The former president of the European Central Bank has said the EU will be in recession by the end of the year amid surging energy costs. Mario Draghi, the former Italian prime minister, said the continent’s economy is also struggling with low productivity and a lack of skilled labour. He added that the EU will not survive beyond being an economic bloc without further integration.
Asian share markets rallied on Thursday and the dollar was weaker after most U.S stocks edged higher and the S&P 500 recorded its longest winning streak in two years, with investors on high alert for signs that global interest rates have peaked.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, although up 4.6% so far this month.
FTSE 100 technical analysis for today, 9th November 2023
A few tests below 7400 yesterday and once again the 7440 level held as resistance, this setting up 7370 and 7440 as the range in play currently. We still haven't tested the 7360 daily support level so that remains in place for today, and a rise, dip, rise looks like it will play out.
The bulls will of course be keen to break above the 7440 level as that would then allow a rise towards the 7500 level once again, more than likely the 7515 area ultimately.
The 10d Raff channel continues to head up and has support at 7340, and with the key fib here and also just below S1 should we see this level then I would like to see a bounce here, if we get below 7360 today.
Below 7340 the bears will have a bit more momentum and 7322 S2 would more than likely be seen, with the 7270 area below that - S3 and a daily support here. I am not expecting us to get that low today. We do have a speech by the FED's Powell at 1900 this evening so we may see some chop around then on the US markets.
Initial resistance then is at 7422 with R1 here and another test of the red 2h coral line. We could see an early rally to here then a drop back down though if the bulls manage to break 7422, then 7440, we should be on a path towards the R2 level at 7469. 7474 is also daily resistance so a short here is worth a go as well.
The US markets are holding onto their recent gains, and the 4305 level is now locked in as support on the daily chart for the S&P500. As such should we drop down to test that line anytime soon then a long here is worth taking to hold towards year end.
Looking at all the daily charts the 10d Raff channels are heading up on all the indices while on gold it's heading down. Suggests money moving out of the gold traditional "safe haven" and flowing back into equities. That fits with the seasonality chart and a strong year end.
Good luck today!
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