Technical analysis for FTSE 100 for 30th October 2023
APAC stocks ultimately traded mixed Monday but with the major indices mostly in the red as geopolitics continued to dominate headlines ahead of month-end and this week’s slew of upcoming risk events.
Oil slipped with gold and government bonds as demand for haven assets eased after Israel’s military action in Gaza proceeded more cautiously than had been anticipated. Brent crude dropped below $90 a barrel after rising by almost 3% on Friday, while WTI fell toward $84. S&P 500 futures contracts gained 0.3% after the gauge fell 0.5% on Friday, with risk appetite dented over worries including a persistently hawkish Federal Reserve and underwhelming corporate earnings
It’s been a cautious start in Asian markets as Israeli troops backed by tanks pressed into northern Gaza with a ground assault that drew increased international calls for the protection of civilians.
Yet, oil prices have actually slipped and U.S. equity futures are firmer, suggesting investors are wagering the conflict will not widen or hamper oil supplies, at least for the moment.
FTSE 100 technical analysis for today, 30th October 2023
The week is starting a bit more optimistically having dropped down last thing on Friday to test that 7270 daily support level that we had pencilled in. As such the bulls will be keen to defend this and drive the price higher today with a bull Monday hopefully kicking in.
The ground "invasion" is more low key than markets feared so far though worries over escalation still exist. That said the markets will probably focus more on the short term for the moment and see the bulls try and pull away from the 7300 level.
Initial resistance is on the 2h chart from the Hull MA at 7326 so this level (also a back test of one of the daily supports on Friday) may well see the bears have a go, which could drive the price down to the 7260 again for a retest. We have the key fib here for today as well so if that did play out then I would like to see that hold, and in fact an in hours test of that key level would be good.
The Raff channels continue to head down and we have the 25ema resistance at the 7472 level - I don't think we will get that high today but do still keep an eye on that for the moment.
We are nearing the month end chop as well so may well see a bit more profit taking tomorrow on the last day of the month and that may well tie in with a bear Tuesday. So a push higher today to then sell tomorrow would also make sense.
In the short term for today, above the 7326 level then I am looking at 7360 for a reaction as we have the 30m 200ema and the key fib here. A drop off that later on would fit well, also as its a 100 point bounce from Friday's low.
Below 7260 today and then the bears will be looking at 7223 S1 to be tested. A break of that (and it would probably take some bad unexpected news to see a drop of this size) then 7178 S2 and the bottom of the 20d Raff channel would be the next key area.
So generally looks positive for today. Good luck!
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting - Read more here
Recommended Broker for FTSE 100 trading and how to start trading using support and resistance
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.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE 100, DAX40, Gold and S&P 500.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and group membership for discussion and realtime trade updates