Technical analysis for FTSE 100 for 20th November 2023
Stocks advanced in Asia and the dollar weakened on mounting speculation the Federal Reserve is nearing the end of its tightening cycle. Japan’s Nikkei 225 Stock Average touched a fresh 33-year high.
A gauge of regional equities headed for its highest close in two months after dovish comments from Federal Reserve officials last week bolstered bets the central bank is done with interest-rate hikes. The dollar slipped against all its Group-of-10 peers while an index of emerging-market currencies climbed to the highest since February.
Japanese shares hit highs not seen since 1990 on Monday as strong earnings and offshore demand fuelled a three-week winning streak, while the yuan was nudged higher by China's central bank.
S&P 500 futures eased 0.1% and Nasdaq futures lost 0.2%. The S&P is now up nearly 18% for the year and less than 2% away from its July peak.
Tech major Nvidia reports quarterly results on Tuesday, and all eyes will be on the state of demand for its AI related products.
FTSE 100 technical analysis for today, 20th November 2023
A strong showing from the bulls on Friday with a test of the 7515 daily resistance level and setting up for a possible double top around there with today. We have 7526 as the daily 200ema and 7522 as the key fib, so should we see that then we may well see a small drop from here.
The bulls will be keen to build on Friday's strength though and the bears are currently on the back foot. Again, that seasonality is playing out well and the S&P500 will be looking to rise away from the 4500 level during the rest of November.
Initially today we could see a small retrace down to the key support level at 7460, to test the 30m 200ema, and we also have 7481 as the 2h Hull MA support as well. The daily chart EMAs have also now gone bullish once again, which could well set things up well for further upside towards year end. 7450 is support from that as well now, with the 25ema here.
Below the 7460 level then 7429 is the key fib and with that being just above the level we sprung up from on Friday we may well see this hold should it get that low.
Generally today though I am thinking that we will see a bit more optimism rather than a decline down to that level.
Above the 7530 area then the bulls will be aiming for a break of R1 at 7540, as that would allow a rise towards R2 at 7575. Worth noting that the top of the 20d Raff channel is also here, so would likely see a stutter. That said, I am not expecting the price to get that high today either.
Whilst being optimistic the ASX200 had a fairly benign day and consolidated which the FTSE100 could well mimic.
So generally looks positive for today and buy the dip is probably the best plan for today. Good luck!
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