Technical analysis for FTSE 100 for 13th October 2023
The FTSE 100 gained 24.75 points, or 0.32pc, to close at 7,644.78. New data from the Office for National Statistics showed that gross domestic product (GDP) rose by 0.2pc in August, compared to a 0.6pc drop in July. While the ONS data only marks a slight rebound, the data puts the UK one step closer to avoiding a recession this year, which is defined as two consecutive quarters of negative GDP.
The rally in Asian equities halted as Treasury yields surged after US inflation data bolstered bets on Federal Reserve rate hikes. The latest data on continued weakness in China’s economy added to the gloom.
MSCI’s Asia Pacific Index fell more than 1%, on course to snap a six-day winning streak, with several of the region’s benchmark indexes in the red. Hong Kong and mainland Chinese shares extended losses after both consumer and producer prices came in below estimates, a sign that the country’s economy still faces drags despite the government rolling out a series of support measures.
Asian shares slid on Friday while the dollar was firm after U.S. consumer prices increased more than expected, bolstering the case for the Federal Reserve to keep rates higher for longer.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.94% on Friday, on course for its biggest one-day percentage drop in a week, having scaled a three-week high on Thursday.
FTSE 100 technical analysis for today, 13th October 2023
That was a good drop off the 7685 resistance level in the end yesterday, and the bulls subsequently managed to defend the 7600 level. Support is showing just below that for today at 7595 with the S1, key fib and 30m 200ema all here so we may well see any early drop down to this are hold for bounce back.
Resistance wise to start with is at the 7650 level but above that it’s stronger at 7680 where we have the now bearish Hull MA on the 2h chart. That timeframe has gone bearish following yesterdays drop. However above that then the 7701 is the key fib and also just above the 20d Raff channel top at 7697 so we may well see this area mark the top for today.
It feels like we may well see a rise and dip play out today, similar to the ASX200 Friday session. We have 2h resistance for the FTSE100 as mentioned at 7680, and also on the Dax40 at 15520.
Below the 7600 level then the next main support is 7568 so fairly close, with 7530 below that. Despite the negative news – political rather than financial – the markets are proving quite resilient so far, so I don’t think we will be seeing that lower level today. I would like to see the 7595 level hold any test really.
Above the 7701 level then the 7726 is R2 and it’s worth noting that the 10d Raff channel is still heading up so a bias on that is bullish still.
The 10d Raff channel on the S&P500 is also heading up and we are playing out that seasonality rise for early October pretty well so far. The bulls are just trying to hold above the 25ema at 4350 at the moment.
So generally it still looks bullish, at least up to the 7700 area. Good luck today and have a great weekend.
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