Technical analysis for FTSE 100 for 31st October 2023
The FTSE 100 closed 0.5pc higher at 7,327.39, while the FTSE 250 ended up 0.9pc.
Asian equities slipped on Tuesday, hovering close to a near one-year low, as manufacturing activity data from China disappointed while the yen weakened past 150 per dollar after the Bank of Japan tweaked its bond yield control policy.
The yen slid after the Bank of Japan made only minor changes to its yield-curve-control settings, disappointing some in the market who had hoped for a further winding back of its accommodative monetary policy stance.
FTSE 100 technical analysis for today, 31st October 2023
Well we got the bullish overtones across the board yesterday for a bull Monday, with the S&P500 leading the charge. Having hit 4180 its since dropped back and sets up a bear Tuesday pretty well and a buy the dip opportunity for today. It's the end of the month as well so likely to see a drop down as profits get banked.
Initially we have resistance at the 7352 200ema levels, and a bullish 2h chart also with support at 7318. As such these two levels are the break outs to watch for. I wouldn't be surprised to see a drop down to retest that 7260 level though, that we hit out of hours on Friday.
That said I am sure that the bulls will try and defend 7300 as well. The daily chart remains bearish with the Raffs heading down, and the 25ema resistance untested still at 7463 now. The daily coral has now turned red with 7537 resistance - that is basically showing that the trend is down.
If the bears were to break below 7260 then it would likely lead to a lot more bearishness and a slide down towards 7100. Probably not today but would suggest a weak start to November if that played out. I am not expecting that today though! I am more inclined to think that the 7260 level will hold.
Above the 7352 level then 7381 is the key fib along with 7397 as daily resistance. Keep an eye out for both those levels and subsequent reactions.
On the Dax40, we could have a decent month end trade play out - look to buy at 3pm and 9pm and hold overnight for the new month money pump overnight and tomorrow.
Looking ahead to today's news, highlights include German GDP Flash, French Flash CPI, EZ Flash CPI & Flash-Prelim. GDP, US Employment Costs & Consumer Confidence, Speech from ECB’s de Guindos, Supply from Italy.
Good luck today
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