Technical analysis for FTSE 100 for 17th October 2023
Asian stocks rose in cautious trade on Tuesday, with investors choosing to focus on corporate earnings prospects and the resilience of the U.S. economy ahead of tensions in the Middle East.
Treasuries declined as ongoing diplomatic efforts to help prevent the Israel-Hamas war from expanding into a wider conflict reduced demand for haven assets. Yields on the US 10-year benchmark climbed higher than 4.7%, while those on the 30-year rose more than four basis points, with the selloff steepening the yield curve further. Gold fell for a second day, as did oil.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.4%. Tokyo’s Nikkei rose 1%. Overnight the S&P 500 had climbed 1%, while oil prices and the U.S. dollar had fallen.
Quarterly results from Goldman Sachs and Bank of America are due on Tuesday, with Morgan Stanley, pharmaceutical giant Johnson & Johnson, Tesla and Netflix due later in the week.
FTSE 100 technical analysis for today, 17th October 2023
The brief foray below 7600 was defended yesterday but if it breaks today then we may well get a bear Tuesday and a slide down to the 7570 level. That would then be a test of the daily 25ema and a bounce here would make sense. I am also still running some of the S&P500 short from yesterday at 4375 and will try and get a runner out of that.
Initially today though we may well get a kick up to the resistance level at 7667 where we have R1 and a test of the now bearish Hull MA on the 2h chart. The bulls will need to be quick out the blocks though and defend the daily pivot at 7625 (we also have the 30m 200ema here to give it some weight) otherwise the bears will be aiming to continue driving it down.
Overnight we have held on pretty well and are just tracking the green 30m coral upwards to start with though it does look a bit weaker now (bear Tuesday!) and a test of that 7570 are will certainly be key today.
Below 7570 then the bears will be aiming for the lower daily resistance level once again at 7530 though I am not sure we will slide 100 today, especially as oil is underpinning the FTSE100 at the moment, along with a slide in cable (GBPUSD).
On the upside, above the 7670 level then the bulls will once again be aiming to push past 7700 and R3 is slightly higher today at 7735. Again, a 100 point climb might be a tall order today though.
We have MoM retail sales out in the US at 1330 with a drop to 0.3% forecast so may see a bit of movement then.
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