Technical analysis for FTSE 100 for 8th November 2023
The FTSE 100 closed down 0.1pc at 7410.04 as a result of energy and mining investors mulling over disappointing trade data from China, which suggests there will be weaker than predicted demand. The FTSE 250 index went up 0.1pc with Watches of Switzerland putting in a stellar 13.1pc increase, thanks to the company’s bullish predictions of its future growth.
Stocks in Asia ticked lower on Wednesday as investors waited to hear more from Federal Reserve officials who are due to speak this week, including Chair Jerome Powell.
A gauge of the region’s equities fell, as Japan’s Topix led declines. Japanese banks extended their drop on falling yields that tempered expectation of higher profitability. Chinese benchmarks fluctuated between gains and losses.
Equities were mixed in Asia, with gains for tech stocks offset by slumping commodity shares. Wall Street futures pointed slightly lower following gains across the big three indexes overnight, led by a 0.9% rally for the tech-heavy Nasdaq.
Crude oil sank to a three-month low after data showed a steep build in U.S. stockpiles, while worries about the Chinese economy weighed on the outlook for demand. Brent crude futures dropped 25 cents to $81.36 a barrel on Wednesday, while U.S. crude futures fell 35 cents to $77.02 a barrel. Both declined to the lowest since July 24 in early Asia trade.
FTSE 100 technical analysis for today, 8th November 2023
The bears had another go yesterday on the FTSE100 and overnight we have broken below the 7400 level. I am still running some of the 7438 FTSE100 short and just taken a bit more off at 7386. We should see a drop down to test the 7360 level today and that daily support there, which is also just below S2 at 7373, and also the key fib there.
If the bulls can defend that level then we should see a bounce back towards the 7400 level. The US markets were more optimistic yesterday but the FTSE100 wasn't playing ball at all as oil declined. That said I wouldn't be surprised to see the S&P500 drop back a bit today as that move to 4385 is already starting to fizzle out.
Below 7360 then the bears will have a bit of momentum on a break of that and with S3 at only 7351, we could get down to test the 10d Raff at 7330. I would like to see that hold so a long here is worth a go if it gets that low, as that would be the first test of the bottom of that channel since it started heading up.
Its also worth noting that the 25ema on the S&P500 and NASDAQ has gone bullish for both so a dip and rise with a test of that at 4297 and 14860 respectively would fit the daily chart very well. A bearish session today and tomorrow to test that and then set up a climb for the rest of November and into December would be very nice!
Back to the FTSE 100 and on the bullish side, then a break of the 7410 level where we have the daily pivot and just above the 30m coral and 200ema, would likely see R1 at 7426. That is just below yesterdays high as well, is could see the bears have a go here. The 2h chart does remain bearish though, with the coral now red at 7434 so should we see this area then another short here is worth a go. 7441 is also the Hull MA but would be the second test (Mondays short at 7438 was the first and has yielded a decent haul). The bulls may struggle here therefore.
A break above 7441 and then 7463 R3 would be next up.
Generally thinking a bit of a dip and rise today as we have moved below the 7400 level.
Good luck.
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