Technical analysis for FTSE 100 for 12th October 2023
The FTSE 100 ended the day marginally lower, down 0.11pc, dragged lower by Burberry after rival LVMH raised concerns over the luxury market. Shares in Burberry fell more than 3pc. The FTSE 250 closed down 0.51pc at 17,876.24
Vladimir Putin said that the cuts to oil supplies imposed by Saudi Arabia and Russia will “most likely” be extended as the Opec+ cartel tries to prop up prices. The Russian president said the world’s two largest oil producers and their allies will probably “continue our cooperation”. Asked if the agreement to cut supply would be extended, he told the Russian Energy Week conference in Moscow: “Most likely. We need to consult with colleagues - our decisions are made by consensus.
Asian shares rose on Thursday as markets wagered that U.S. rates have peaked after more dovish remarks from Federal Reserve officials, while traders awaited the U.S. consumer inflation report later in the day for further monetary policy clues.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.7% to the highest level in three weeks. Tokyo’s Nikkei rallied 1.3% for a third straight day, climbing away from its five-month low hit last week.
Hong Kong’s Hang Seng index jumped 1.8%, driven by a 3% surge in banking shares after Central Huijin Investment, China’s state fund, raised stakes in the big four banks. China’s blue chips rose 0.7%.
Overnight, Wall Street closed higher after Federal Reserve minutes showed a growing sense of uncertainty around the path of the U.S. economy, with volatile data and tightening financial markets posing risks to growth and leading policymakers to extend a rate pause last month.
FTSE 100 technical analysis for today, 12th October 2023
UK GDP has just come in as forecasted, and it's also all eyes on the inflation data out of the USA later on, at 1330. As per yesterday the charts remain bullish so more upside today may well play out. The S&P500 is also just breaking above its 20d Raff channel which would give some strength to the bulls as well.
For the FTSE100 today it looks like we may well get a rise to test that 7685 daily resistance level, and we also have R1 and the key fib here to give it some extra weight. As such a drop off this to test the pivot area and the green 30m coral at the 7635 area would make sense.
That's a fairly narrow range though between the key support and the key resistance so I wouldn't be surprised to see a break later on, especially if it's helped by the news.
Above the 7685 level then the bulls will be aiming for R3 at 7705 and a move past that will be a positive sign for more upside next week.
On the flip side, a break of 7635 will likely see a drop down to test the 7580 area where we have S2, 30m 200ema, key fib and the 2h coral. As such, should we see this level then a long here would be worth a go as I would like to see that hold for a bit more upside into next week.
The 10d Raff channel on the FTSE100 has also switched to a bullish upward angle now, following the climb from the 7382 level at the start of the month, which should indicate a bit more strength as well. The markets have certainly ignored the war news, though there is also that adage that war is good for markets.....
Not much more to say really, don't forget the CPI news at 1330, and keep an eye on 7635 and 7685.
Good luck today!
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