Technical analysis for FTSE 100 for 31st October 2024
Well that's the budget out the way now, and focus will be on NFP tomorrow and the election in the US on Tuesday..... nothing too major then!
Initially today we still have the 8120 support area in play and we may well see the bulls stage a bit of a fight back from around this area given the slide from 8320 this week. 8116 is the key fib and the 200ema on the daily is just below this as well so I would like to see a bit of a bounce around this area.
If the bears were to break the 8100 level then 8062 S3 is next up but a move below the 200ema on the daily at 8107 would be quite bearish for stocks in the short term. The markets may well take solace that while the budget wasn't great for growth, it wasn't as bad as it could have been. The daily 10d Raff channel is heading downwards again now, though we are just on the bottom of the 20d Raff channel bottom this morning at the 8133 level.
The 2h chart remains bearish with the 8180 level as the Hull MA - as such should we get a rally this morning to this area then a short here is worth a go, as it also aligns with the daily pivot at the 8174 level.
Above this the bulls would ultimately be looking at 8225 as we have the key fib and the 30m 200ema here. Though a break above 8200 might be a big ask given the negative sentiment at the moment.
Earnings continue in the USA as well, with Amazon and Apple later. 12:30 sees the US data out, with personal consumption possibly giving some more guidance on Fed rate cuts.
I can't see it getting much above 8225 today but if it did so then 8244 is R2, 8271 is R3, but 8260 is the daily 25ema and would be the first test since going bearish again - so a decent shorting spot also.
Good luck today, shorting the rallies is the preferred play for the moment.
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