Technical analysis for FTSE 100 for 20th November 2024
A bit of an overreaction to the downside yesterday saw the 8050 level tested once again, but it managed to hold and we are looking to open at around the 8100 area. News just breaking first thing that the US have closed their embassy in Kyiv, following a threat of an air strike. That may well spook things to start with and another test of the green 2h coral at the 8074 level is likely, We also have initial support at the 8090 level with the 30m 200ema here.
On the flip side, the UK CPI figure has just ticked up to 2.3% and slightly above forecast which may well help the bulls if they want to fight back today. We are also waiting for the Nvidia results later on.
As mentioned yesterday we may well have set the low at 7995 for the moment (WW3 notwithstanding) and the bulls will be looking to push on past the 8150 level. This level looks key for today as we haver the recent high here, but also the key fib and R1, along with another test of the daily 25ema here.
As such we may well see a dip of this again but if the bulls can get a close above 8120 today then it bodes well for continued upside. They will be pushing for that today. Above 8150 then the 8201 R1 level, and also being the round number is next and also just above the 20d Raff channel.
Higher up than 8252 is R3 and also the daily red coral line, so we may well see a decent bearish reaction at this level if seen later this week. Big ask for today but it feels like the bulls are aiming for this.
Support wise if the bears break below the 8073 2h coral level then they will be looking for 8050 again as we have S1 here, then the key fib at the 8038 level, with 7995 below that.
if it gets very bearish then the lower daily support and S3 at 7940-7950.
Generally today I am thinking that we may well see an initial rise to the 8150 area, a drop back and then further upside. Having fought back from the 8050 level then the bulls will certainly be keen to keep the momentum up.
Good luck today.
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