Technical analysis for FTSE 100 for 26th November 2024
Bull Monday played out well and sets the scene for a bit of a drop back today (in the overall bullish trend though) and funnily enough kick started last night with Trump's post about tariffs. Not totally unexpected though as he has been mentioning tariff for a while. The bulls failed to reach the out of hours high at 8320 yesterday so that level remains the line in the sand for the moment, though we now have a bearish 2h chart with resistance from the Hull MA at 8290.
As such, if we get a rally first thing to this area awe may well see the bears appear here, as it also ties in with the daily pivot. And the red 30m coral. A drop off from here down to the overnight low at 8235 would be good, and if that breaks then the 8200 area is the next key support with S3 and the 30m 200ema here.
Below that then I am looking at the 8182 level as we now have a bullish daily chart based on the moving averages and that is locked in as support from them now. As such, if we were to see a test of that later on today then a long here is worth a go as more traders start talking about the Santa Rally in earnest. Nearly December already!
Above 8300 today and then we have 8320 as mentioned, and then 8340 looking ripe for a short as well - the key fib and R2 here so should see a reaction if tested. Be worth a short if seen. Ultimately the bulls will still be aiming for the 8375 level which is the higher daily resistance.
The main news will be the Fed's minutes at 7pm, though US consumer confidence/new home sales at 15:00 may well see some volatility.
Generally today I am thinking that we will see a rise and dip as bear Tuesday kicks in later on... initially traders will be wanting to retrace some (or all) of the overnight drop.
Good luck today.
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