Technical analysis for FTSE 100 for 24th October 2024
The bears took control yesterday but the 8240 support area held and we are just looking to move back above the 8300 level first thing this morning. Golds drop yesterday may well have been a bit of front running for a climb on the indices, as well as profit taking after its recent run higher. Good to get pretty much all of that move with our short!
Initial support today is at the daily pivot at the 8278 level and the bulls will be looking to break the 8320-30 level where we have the R1 and key fib for today. It's also the red 2h coral, so I would expect a stutter around here, at least on the first test.
Above the 8330 level then the bulls will be aiming for the 8364 R2 level, and then another test of the 8400 above that, where we have R3 for today, and then the daily resistance at 8412 just above. Should it get that high then a short here is worth a go. Tesla results last night showing an uplift in car sales may well help the bulls today as well.
Looking ahead to the news today, highlights include EZ, UK & US Flash PMIs, US Weekly Claims, New Home Sales, ECB's Lane & McCaul, Fed's Hammack, BoE's Bailey & Mann. Initial jobless claims at 1330 will likely lead to a bit of volatility, as well as the PMI at 1445.
For the bears, they will be looking to break the 8240 level which has held as support once again, and is the bottom of the 10d Raff channel for today. The 20d Raff channel is just below this at 8220 so any overshoot of yesterdays low could get a reaction here, as 8217 is also the key fib for today. If we were to drop that low then a long here is worth taking.
The daily chart is still bullish, with ascending Raff channels and positive moving averages, despite the price moving below the 25ema daily level.Ergo buying the dip not he longer timeframes is still the play.
So expecting a bit of a rise dip rise day today and it will be interesting to see if the bulls can regain the upper hand after being beaten down yesterday.
Good luck today....
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