Technical analysis for FTSE 100 for 29th November 2023
The FTSE 100 dropped by 0.07pc Tuesday, and tested the 7400 once again. The two biggest risers were Rolls-Royce (up 6.21pc), which clearly had a successful investor day, while Smurfit Kappa was up up 3.1pc. Pearson dropped 3.69pc and Burberry was down 3.32pc. Meanwhile the FTSE 250 dropped 0.28pc.
Despite recent weakness, both the benchmark stock indexes eye monthly gains as sentiment improved on hopes of a softer monetary policy globally, with rising bets that interest rates have peaked.
Meanwhile, Bank of England interest-rate setter Jonathan Haskel said the inflationary heat that remained in Britain's labour market suggested there was no way to cut interest rates any time soon.
The dollar fell along with Treasury yields, on growing expectations that the Federal Reserve is done with policy tightening and may start cutting interest rates next year. The US currency dropped for a fifth day as it weakened against all its Group-of-10 peers and most emerging-market counterparts in Asia.
MSCI's global stock index advanced on Tuesday while the dollar fell as a Federal Reserve official signaled that the U.S. central bank was done raising rates and could even consider rate cuts if inflation keeps easing.
Later this week the spotlight will be on the U.S. October personal consumption expenditures report (PCE), which includes core PCE, which is the Fed's preferred measure of inflation. Also euro zone consumer inflation figures should give further clarity on where prices and monetary policy are headed there.
FTSE 100 technical analysis for today, 29th November 2023
The bears managed to drive it down yesterday but the 7400 level held as support. We may well see the bulls build on that as it was probably just a stop hunt to clear out the longs from 7450. The line in the sand on the upside remains at 7500 though so that will be the level that the bulls will be keen to break today if it gets that high.
Initially the 30m chart looks positive with the green coral and the daily pivot providing initial support at the 7440 level. A hold of this and I am thinking that we will see a rise towards that 7500.
There are however a few resistance levels to jump first, with the 200ema at 7459 first up. The 2h chart is also bearish so the bulls are swimming against the tide to start with, so will need a bit of momentum to break higher.
The S&P500 is looking more positive though for today and the 2h chart has now gone bullish again - that may well help other markets to push higher today as well. A month end pump today and then some profit taking tomorrow would certainly fit quite well. Interesting article as well that GS and BoA corporate clients are piling into the markets at the moment..... says a lot (strong year end)!
Above 7500 and the double top area at 7525 remains to be tested a second time, and then 7536 for R3. A break of this would also be a break out of the 10d Raff channel for today so would certainly provide the bulls with that momentum! Not sure we will see that today though. If we do add 100 to test this area then a short is worth a go here.
Support wise, below the daily pivot at 7440 then 7400 remains and then that 7380 area - we have the key fib here and also 7372 is S2.... should it drop down to this 7380 area then a long here is worth a go.
News out at 1330 in the USA is GDP estimates, with the forecast at 5% versus 2.1% previously. If that comes to pass then the market may well get a boost.
Good luck today.
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