Technical analysis for FTSE 100 for 10th October 2023
The FTSE 100 closed marginally lower, down 0.03pc at 7,492.21, after fears of higher fuel prices hit airlines and leisure stocks. The FTSE 250 midcap index ended down 0.9pc at 17,572.06.
The pound has fallen amid a rush by investors to hold the safe-haven dollar amid the conflict in Israel and Gaza. The US currency has surged in value against its peers after the Israeli government declared war following deadly attacks from Hamas.
Treasuries jumped and shares in Asia advanced after comments by Federal Reserve officials fueled speculation the US central bank may stand pat until year-end. The yield on the policy-sensitive two-year Treasury dropped by the most since end August, while the benchmark 10-year had its best day since March. Traders boosted bets that the US tightening cycle is about done, while jitters over the Israel-Hamas war added haven demand.
Asian shares rose on Tuesday in line with Wall Street’s high note and bonds also rallied, boosted by dovish Federal Reserve remarks, while oil prices edged down after Monday’s surge with the market remaining focused on the conflict in the Middle East.
FTSE 100 technical analysis for today, 10th October 2023
A decent day in the end yesterday and it was fairly bullish as expected despite everything.... For today we may well see the usual bear Tuesday pattern kick in, and we have resistance at the 7565 level to start with as we have the key fib here, along with the daily resistance.
An initial drop down to the 7511 area to test the daily pivot would therefore make sense, as also have the top of the 10d Raff channel at the 7570 level. Above this area then the bulls will be looking at a rise towards the 7600 level, and possibly even the R3 for today at 7622.
That said that may well be a big ask after yesterdays pumping, and against a bear Tuesday backdrop. The bulls are also just trying to break above the 25ema on the daily this morning so we may well also see this give weight to an initial drop. 7555 is also he daily 200ema, so a few resistance levels in play to start with today.
If we do get a drop down to the 7511 daily pivot and 30m 200ema area, then a bounce there may well materialise, as the bulls will be keen to defend the round number as well.
Below that though and then the 7460 level is the next support level of note with the key fib, and green 2h coral here, and just below the 2h Hull MA.
European equity futures are indicative of a higher open with the Euro Stoxx 50 future +1.0% after the cash market closed down 0.8% yesterday.
Both the Raff channels are heading down now on the FTSE100 as the weak start to October continues, and after the bearish September. The bulls will need a strong push to break that 7570 area today's it will be interesting to see if they can manage that.
So once again, stay nimble and good luck today.
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