Technical analysis for FTSE 100 for 15th December 2023
The FTSE 100 gave up some gains on Thursday after the Bank of England (BoE) indicated that interest rates would remain high for an extended period, a day after the U.S. Federal Reserve hinted that it could pivot to cutting rates next year.
The pound jumped 1.2% as the central bank stuck to its guns, largely shrugging off data showing a slowdown in wage growth and a 0.3% fall in gross domestic product in October. The Monetary Policy Committee voted 6-3 to keep rates at a 15-year high of 5.25%, in line with economists’ expectations in a Reuters poll last week.
The blue-chip FTSE 100 was up 1.3% after earlier touching its highest level since Sept. 22, while the more domestically focussed FTSE 250 mid-cap index soared 3.0%. It climbed to its highest level since July.
Sentiment remained upbeat after the Fed stuck to a widely expected dovish script and left interest rates unchanged on Wednesday. Chair Jerome Powell said that policy tightening is likely over as inflation falls faster than expected, with a discussion of cuts in borrowing costs coming “into view”.
The European Central Bank also held rates steady and pushed back against bets on imminent cuts to rates by reaffirming that borrowing costs would remain at record highs despite lower inflation expectations.
Asian stocks advanced, fueled by China’s central bank as it stepped up support for the economy by adding $112 billion of cash into the financial system. Treasuries edged lower.
MSCI AC Asia Pacific Index rose 1% to its highest since early August, with Hong Kong stocks rallying 3%. Futures for US equities crept slightly higher after a technical indicator showed they are in overbought levels. The S&P 500 saw a small advance in the previous session and the Nasdaq 100 fell after an over 50% surge in 2023.
FTSE 100 technical analysis for today, 15th December 2023
The FTSE100 bulls were out in force yesterday and managed to get a test of the 7720 level which becomes the new line in the sand to break. Initially today I am thinking that we will see a rise towards that area and a test of the R1 and key fib which are also here.
The 7625 level should have held as support yesterday but the overshoot to 7606 may well just have been a stop hunt, which if so would bode well for more upside over the rest of December. Things still look positive for the rally to continue though it is a tad overheated.
Initial resistance below that is at the now red 30m coral at 7667 which has capped things overnight. The bulls will need to be quick this morning to push through that.
If the bulls were to break above the 7720 level today then the next level of note is 7762 where we have the next daily level, and then 7780 for R2. I don’t expect it to get much higher than that though as it’s Friday.
Below the 7610 key fib and yesterdays low, then 7590 is the 30m 200ema and the S1 level. A break of this though (whilst I don’t think we will today) would then see a dip down to the 7570 level.
No real surprises on the rate front this week either, though there are some more positive news releases also coming out, with US retail sales rebounding in November, while jobless claims dipped. Does lend weight to rates staying steady for a bit longer though.
Not too much more to say really, catch your breath after yesterday’s moves, and keep an eye on the levels. The Dax40 trades certainly worked well yesterday!
Good luck today and have a great weekend.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting
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