Technical analysis for FTSE 100 for 10th November 2023
The FTSE100 index was up 0.7pc yesterday (to 7,455.67). The growth was in part fueled after AstraZeneca raised its profit outlook for year, and its shares put on 2.6pc. The FTSE 250 was up 1.07pc.
Shares in Asia fell after Jerome Powell warned interest rates may have to climb further, stunting a rally in stocks and bonds and sending investors back to the dollar. All major equity gauges in the region were in the red, tracking a drop for the S&P 500 on Thursday. Hong Kong’s stocks were among the biggest losers after weak profit reports from chipmaker SMIC and casino operator Wynn Macau. The US benchmark slid 0.8%, ending eight days of gains — its best run since 2021. European futures pointed to a weak start.
Asian stocks fell to their lowest in a week on Friday, while the dollar was firm as elevated Treasury yields weighed on sentiment after hawkish comments from U.S. Fed Chair Jerome Powell extinguished expectations of a peak in interest rates. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1% to a one-week low of 486.39, while Japan’s Nikkei was 0.50% lower.
U.S. Federal Reserve officials including Powell said on Thursday they are still not sure interest rates are high enough to finish the battle with inflation.
The Fed is “committed to ... monetary policy that is sufficiently restrictive to bring inflation down to 2% over time,” Powell said at an International Monetary Fund event. “We are not confident that we have achieved such a stance.” Powell’s comments along with a weak auction of $24 billion in 30-year Treasuries pushed yields higher, casting a shadow on equities and providing support to the dollar.
FTSE 100 technical analysis for today, 10th November 2023
Decent bounce yesterday from the 7360 support level that managed to climb all the way to 7460 whereupon it turned tail! Overnight has seen further weakness and we now have a red 30m coral for resistance to start with at the 7428 level. The bulls will be looking to break this as that would then allow a retest of yesterdays highs and also the R1 level at 7471.7475 is also the key fib, so should we see this level today then a short here is worth a go.
Above that then 7500 would be the next key level and then 7520 for R2. Might be a big ask to start really pushing on given its a Friday and we may well see some profit taking later on.
GDP data just out shows Britain’s economy has slid into stagnation as official figures show the economy flatlined in the third quarter. Gross domestic product (GDP) was static in the three months to September, according to the Office for National Statistics. The consensus among economists had been that the economy would shrink by 0.1pc.
Support wise today then 7360-7370 is the key area once again with S1 and the key fib here. A break of this and the bears will be aiming to take the price down to 7350 for a test of the bottom of the 10d Raff and then 7313 S2 below that. Not sure we will shed 100 points today as that bounce off 7361 yesterday showed that they still fancy buying it up.
The bulls will of course be keen once again to defend the 7400 level. The S&P500 and NASDAQ daily charts remain bullish with the 25ema support locked in at 4305 and 14900 respectively.
The FTSE100 2h chart is bullish, with 7407 as Hull MA support, however the bears have managed to push below that overnight with a few failed breaks. So a bit of a battle ground to start with at this level is likely today.
Generally being a bit more cautious today as its the last day of the trading week but have a good session, good luck and have a great weekend!
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