Technical analysis for FTSE 100 for 27th November 2023
The FTSE 100 ended slightly higher on Friday as rising energy stocks helped counter broader market weakness, although along with the FTSE 250 it clocked a weekly loss. The FTSE 100 closed up 0.1%, while the midcap index was down 0.1%. Both indexes logged weekly falls, of 0.2% and 0.5%, respectively.
Asian stocks swung to a loss and US equity futures fell as slowing Chinese industrial profit growth sapped optimism after last week’s equity rally. The yen strengthened against all its Group-of-10 peers. China shares led declines as data showed profits at the nation’s industrial companies climbed at a slower pace, suggesting the economic recovery remains uncertain. The Hang Seng China Enterprises Index dropped as much as 1.4% while CSI 300 Index closed 1.2% lower in Monday’s morning session. Benchmarks also fell in Australia and Japan.
Asian shares slipped on Monday ahead of potentially market-moving inflation data from the United States and Europe later in the week, and a meeting of oil producers that could stop, or extend, the recent slide in prices.
FTSE 100 technical analysis for today, 27th November 2023
Looks like we may see a dip and rise play out today, as the ASX200 had a fairly bearish session, oil prices continue to slide a bit (and may slide further depending on the OPEC meeting) and the US markets have gapped down to start with. Friday saw a good rise to the 7500 level but with the daily resistance here, it then started to slide. As such that level remains the short term line in the sand.
Prior to that we have the daily pivot for resistance at the 7481 level and also the 30m 25ema here. If the bulls fail to break this first thing then we will likely see a slide down to the 7434 support area with S2 and the key fib here. There is also daily support at 7444.
The daily chart remains bullish though and the 7458 level is the 25ema on that, though pretty much every daily candle has a tail that has tested that line since it went bullish last week. Bears are probing for a break, and with the US markets not yet testing their 25ema supports since the daily charts went bullish, we could still see a pull back in this uptrend that may play out into the year end.
The S&P500 has a gap to close from Friday closing price at the 4555 level and looks to want to close that initially this morning. As per the FTSE100, if the bulls fail to break above this then we may well see a slide today and a bull Monday may not play out today, or may appear later in the session.
The Raff channels all continue to head up though as the bigger picture trend remains bullish. Still thinking that we will see more strength in the run up to Christmas as well.
In the news, PM Sunak is reportedly eyeing more tax cuts in spring as he weighs the UK election date, while he also stated in an interview that claims the UK is headed for austerity are unfounded.
Not too much more to say really, watch for 7480 initial resistance, then 7500 and 7523 above that. 7440 for support, with 7410 below that.
Good luck today.
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