Technical analysis for FTSE 100 for 14th November 2023
The FTSE 100 had a positive day, up 0.89pc to 7,425.83. Meanwhile, the FTSE 250 was up 0.34pc to 17,913.65.
The Bank of England will cut interest rates from May, investment bank Morgan Stanley has said, in a boost to mortgage borrowers. In a note to clients, the Wall Street giant predicted that policymakers will reduce rates to 4.25pc by the end of next year as food and core goods prices ease. Analysts also predicted that the UK will be in a technical recession by the end of the year, with the economy shrinking by 0.1pc in 2024 before growing by 1pc in 2025.
Asian stocks pared gains as concern China’s economy is slowing weighed on tech shares. Equities were still higher across the region as a whole on optimism a report Tuesday will show US inflation slowed last month.
MSCI’s gauge of regional equities trimmed its advance to 0.3% from as much as much as 0.7%. China is scheduled to publish a range of economic data Wednesday including retail sales, industrial production and fixed-asset investment. Tech giants Tencent Holdings Ltd. is also due to announce earningsWednesday and Alibaba Group Holdings Ltd. on Thursday.
Asian shares inched up on Tuesday in cautious trading ahead of a crucial U.S. inflation report that could heavily influence the Federal Reserve’s policy outlook, while the fragile yen flirted with one-year lows, putting it back in the intervention zone.
FTSE 100 technical analysis for today, 14th November 2023
Fairly tight range on the FTSE100 yesterday dropping off 7420 in hours rather than the 7430 level. The 2h chart remains bullish and the first test of the Hull MA on that at 7395 yesterday saw a bounce up to finally test the 7432 resistance level after the bell. We have dropped off that overnight but the bulls will be keen to push on (and continue to defend the 7400 area) and that means that we could see a rise towards the 7460 resistance level.
At 7460 we are just above 7455 R1, and then also at the daily level at 7466, along with the key fib at 7460. As such, should we see this level this morning I think that we may well see a dip off this. Would also be a nice round 100 points from the 7360 level seen during the Sunday night session. A good profit taking level!
Above 7466 level then 7500 is the daily coral and would likely also see the bears appear here, whilst higher up 7527 is the 200ema on the daily and just shy of the 7533 R3 level. Not really expecting that today and it feels like a rise and dip may well be more likely. Do watch that 7460 area for decent resistance.
Support wise, then the daily pivot and the 30m 200ema are at the 7405 level, with 7361 the key fib below that. However they would need to break the 2h Hull MA at 7397 to test that lower level. We may well see that 7400 area therefor hold initially this morning.
The S&P500 is also looking like it will get a positive start this morning, with a bullish 30m chart. A green 30m coral with support at 4399 should hold any early drops, and a rise towards the 4440 level would fit well. We have R2 and the key fib resistance here, so an attempt by the bears here would make sense. The 2h and daily charts for the S&P500 are both bullish too, with the Raff channels both heading up. Lends weight to the stronger year end potentials!
The Dax40 should follow a similar pattern too with a rise towards the 15430 resistance level and then a drop back down. A rise and dip would fit well, and we have support on the 2h to start with at the 15330 level. Below that then the 15272 level for a the key fib and the 30m 200ema is decent support and the bulls will be keen to defend that.
Good luck today, watch 7430 and 7460 on the FTSE100 for resistance, 7400 and 7360 for support.
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
Keep up to date with new content, free sign up below with just your email address
Day trading for beginners - Join today and get:
- Daily detailed analysis before the market opens
- Detailed trade plans for the FTSE100, S&P500, Dax40 and Gold
- Email updates during the day
- Live trading room open all day
- Telegram chat room groups
- Help and support
Membership is £59.99 a month. A results spreadsheet in Excel can be viewed here