Technical analysis for FTSE 100 for 30th October 2024
Well here we are, the first budget for the new government so likely to see some volatility on the markets as the various elements are announced.... though most seem to have been leaked already! It's already started having an effect as the bear Tuesday played out well yesterday and overnight we have dipped below the 8200 level. That opens up a possible slide down to the next key support at the 8120 level whereupon we may well get a bounce.
Initially today it feels like shorting any early rally is probably sensible, especially if we get a climb up to the 8250 area where there looks to be decent resistance. We have the daily pivot, Hull MA and 30m 200ema all here, so a decent shorting spot if seen.
Above the 8260 level then the bulls will be trying to get the price back towards the 8320 level and that remains the key line in the sand for the moment - having dropped off that yesterday it's still a large hurdle. 8350 remains resistance above that still, though they missed their chance to push that high yesterday morning.
Mainly it's all about the supports today and 8180 is first up with the 20d Raff channel bottom here. Below that then S1 is at 8166, though I am more inclined to go with a test of the 8120 level as mentioned. The usual pattern is buy the rumour sell the news but I think we might just see selling as we head towards the budget at 1230. We also have some US data out today with ADP at 1215, and a forecasted drop to 110k, along with GDP for Q3 at 1230, forecasted at 3% again. Both likely to generate some chop.
If the bears were to break below the 8114 level though then 8100 round number is in play, with S3 at 8040 below that.
Its really all about the budget today - maybe wise to be a bit cautious with the stake sizes and bear in mind that its likely to be choppy - very easy to get whipsawed out of trades.
Good luck today.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting
Recommended Broker for trading - MT4/5, web and mobile
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership, Trading Tips, Support and Resistance Levels with Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
Keep up to date with new content, free sign up below with just your email address
