Technical analysis for FTSE 100 for 19th November 2024
The bulls drove it up off the 8060 yesterday and we saw 8130 after the bell. Overnight the strength has continued and we may well get a rise and dip play out today with bear Tuesday kicking in this afternoon.
Initial support is at the 8100 area where we have the daily pivot and just above the 30m 200ema which sits at 8085 and rising. As such should we get an opening drop to this area then a long here is worth a go. Ultimately I am going to be bold and say that we may well start to see the year end rally kick in soon and that 7995 level we longed at marked the low. The US markets have stabilised as well following the drop.
The FTSE100 needs to break above the 8161 level today where we have the 25ema on the daily, as that then leads to 8190 for a test of the top of both the Raff channels, but ultimately the bulls will be looking for the 8257 level at some point soon - this is the red daily coral and also daily resistance. They will certainly need to pull their finger out over the next 6 weeks for the year end target of 8600....
So support at the pivot 8096 to start with though a break of that would likely see a slide down to the green 2h coral at the 8055 level and a double bottom with yesterday's low. Should it get that low it may rattle the bulls a little bit but having said that it looks more like a rise and dip day today rather than sustained selling from the off.
Looks like we will see a similar pattern on the S&P500 as well with the 5890 daily pivot area looking like decent support, and a rise towards the 5940 level playing out today, That area is a test of the red 2h coral and should see a reaction as it would be a good point to bank some long profit.
Light on the news front again, with the main event being BoE Bailey and his peers appearing in parliament at 10am, where they are likely to be peppered with questions about the implications of the government's big-spending budget and Trump's potential trade policies.
Good luck today.
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