Technical analysis for FTSE 100 for 7th November 2024
Trump's victory certainly galvanised the bulls yesterday with US indices and BTC climbing high, while gold tumbled. Rhetoric on America first and tariffs kept the European markets in check though as the FTSE100 tumbled from the 8300 level. Initially today we have the 8190 Hull MA resistance level that the bulls will need to break if they are to push on today.
The big event for us will be the BOE interest rate decision at midday with an expected 0.25% reduction. 13:30 also sees US jobless claims data followed by the FED at 19:00 with a mooted 0.25% rate reduction then as well.
So, 8190 initially, then 8203 for the daily pivot, but if the bulls are able to break this then R1 at 8273, with the red daily coral 8285 and the top of the both the Raff channels at the 8290 area are likely to see strong resistance in this zone. Shorting around here if it gets that high is worth doing.
Initially we have support from the key fib at 8135, and this is also the overnight low that has held. A break of this will likely lead to 8102 for a test of S1. If we were to see this then I am thinking that a bounce here would make sense.
If we get an initial drop down off the 8190 area then we could then see some buy the rumour ahead of the BoE decision. Then sell the news!
The US bulls will likely want to kick on upwards, though we are sitting at the top of both the Raff channels on the S&P500 at 5935 to start with. Again a dip and rise would make sense with a test and hold of the daily pivot at the 5885 level.
The Dax40 needs to break 19170 to start with today as we have the 2h resistance here, and a drop to the 19000 level again may well play out here.
We have a 13.58 point dividend for the FTSE100 today as well so that may well help the bulls. Not likely to see a rush of dividend buying but will likely stop the bears loading up too much.
Good luck today.
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