Technical analysis for FTSE 100 for 30th November 2023
The FTSE 100 slipped for the third straight day on Wednesday following hawkish comments from Bank of England Governor Andrew Bailey. The blue-chip FTSE 100 index dipped 0.4% and the domestically-focussed mid-cap index added 0.4%. Bailey said that the central bank "will do what it takes" to get inflation down to its 2% target, adding that he had not yet seen enough progress towards that goal to be confident.
Asian shares extended gains, heading for their best month since January, as traders bet the Federal Reserve will cut interest rates next year and weak Chinese data boosted hopes for more policy support.
A gauge of regional equities has rallied over 7% this month, helped by a retreat in the dollar and US yields as Fed officials signaled they’re probably done with tightening policy. China’s stocks have emerged as an outlier amid the global rally on concerns about the growth outlook, with a report Thursday showing the nation’s manufacturing and services sectors shrank in November.
Asian stocks rose on Thursday to clock their strongest performance in 10 months, as investor sentiment warmed on a relatively benign global interest rates outlook and signs of economic recovery.
The U.S. personal consumption expenditure inflation report will be released on Thursday. Fed Chair Powell is also due to speak on Friday and expected to offer crucial insights into the Fed's policy approach ahead of their December meeting.
FTSE 100 technical analysis for today, 30th November 2023
A decent climb off the 7409 yesterday, capped by the 30m 200ema at 7455. That remains the short term resistance to start with today, and as it's the end of the month we may well see a rise and dip play out today. The bulls will be aiming to push up towards the 7500 level but we have a decent resistance level at the 7480 area with R2 and the key fib here.
Initially we have support at the 7420 level as well being the overnight low and just below the daily pivot at 7430. To start with the bulls are just trying to break above the 2h Hull MA at 7434 as well.
Above the 7480 area then 7499 as mentioned previously with that double top at 7525 still remaining higher up.
Below 7420 then the S1 7402 level would be the next one to watch, with the daily support at 7378 and the bottom of both the Raff channels at the 7365 level. Not sure that it will get that low as traders will be looking to close out November with a positive vibe.
The U.S. personal consumption expenditure inflation report will be released at 1330 with he forecast showing a slight drop from the previous figures. Might therefore be the catalyst to the profit taking later on.
The daily EMAs on the FTSE100 have weakened slightly with the bulls failure to push on past the 7450 level yesterday, and the 10d Raff channel has started to head down. The start of December is a bit weaker therefore, but I am still expecting a climb into year end.
So, let's see how we end the month, keep an eye on 7450, 7480 and 7500 for resistance, 7420, 7400 and 7380 for support.
Good luck today.
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