Friday Profit Taking | Bearish | Can 8100 be defended | 8077 8050 below | 8165 resistance

Friday Profit Taking | Bearish | Can 8100 be defended | 8077 8050 below | 8165 resistance

Technical analysis for FTSE 100 for 8th November 2024

Both the US and UK cut interest rates, though the FTSE100 continued to remain bogged down in its pessimism! The bulls have failed to get it back above the 8200 level and in fact we have the 8195 resistance level in play for today once again. That also ties in with the R1 level at 8200 so should we see this area may well see the bears appear here again.

Slightly higher then R2 at 8227 ties in with the second test of the 25ema at that level as well, along with 8231 daily resistance. As such should we see this today then a short here is worth taking. We may well also see some profit taking ahead of the weekend, given the strength in US markets this week, which could well drag the FTSE100 down later as well.

Support wise, a potential drop down to the 8112 level and a test of the daily support and 200ema would make sense today, as the bears continue to drive it down from the 8200 area. 8114 is also the key fib, so a bounce here does make sense - just need to see if it plays out if tested!

8103 is S2, and a break of the round number would likely see a slide down to the 8050 level. However, I am inclined to go with a defence of the 8103 level.

I mainly say that as a break of the 8100 level is not good for the bulls - and should it be tested it will be interesting to see what the appetitive is from the powers that be in the UK to keep stock markets optimistic.....

Middle East war is simmering away too, with another anticipated strike by Iran expected, and more US jets being sent to Israel.

On a more positive note, the US market gains have been decent and the bulls will be keen to break 6000 on the S&P500 - however with R1 here, and the first test of this, possibly today, may well see a stall here. Certainly been a decent rise from 5700 on Monday!

Good luck today, and have a great weekend.

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