Technical analysis for FTSE 100 for 1st December 2023
The FTSE 100 hit a one-week high on Thursday, led by aerospace and defence stocks, while a softer inflation reading in the U.S. and rise in oil prices after OPEC+ countries agreed to output cuts boosted sentiment. The blue-chip FTSE 100 rose 0.4%, while the midcap index fell 1.3% but managed to build healthy gains in November. The index also had its best month in 2023.
Energy stocks also supported the broader gains as oil prices gained after OPEC+ producers agreed to output cuts approaching 2 million barrels per day (bpd) for early next year. Boosting sentiment, the U.S. personal consumption expenditures price index rose 3% in October from a year ago, moderating from a three-month string of 3.4% readings, though still above the Fed's 2% target, bolstering bets of early rate cut.
Meanwhile, Bank of England interest rate-setter Megan Greene said interest rates might have to stay high for an extended period and she was more worried about signs that inflation could be persistently high than some data suggesting the economy is in a downturn.
Shares in Asia slipped Friday after the MSCI All Country World Index finished November with its third-largest monthly gain in the past decade. The dollar edged lower.
Asian shares edged lower, starting the last month of the year on a weak note after recent rally, although anticipated interest rate cuts in Europe and the United States should help ease pressure on local currencies and central banks.
FTSE 100 technical analysis for today, 1st December 2023
Start of the final month of the year and we may well see a bit of a rise and dip today as the new month money flows in once again. I think though as it's Friday and the war has restarted in the Middle East, we may see some tempering of the exuberance today, and a bit of a dip later on.
Initially I think we will drop down to the daily pivot area at 7450, and we also have the 30m 200ema here, as well as support from the 2h chart just below at 7442 - the now green coral and Hull MA are both here so I would expect to see a bounce off this level if it gets tested.
Below this and then the 7400 area would be seen again, and given yesterday's overshoot to 7385, the bears may well have a bit of momentum, so could be tested. 7403 has the key fib and S1 for support so if it does break the pivot then this area should hold.
On the resistance side of things, the 7507 level is the key fib to start with, and also R1 at 7516. That quite close to the recent high, and also 7521, the daily 200ema. As such, the bulls may have a bit of a task to break above this area today.
If they managed to do so then 7564 R2 would likely be the next area. Though ultimately a rise towards 7600 would be in their plan - probably not today but we could well see that shortly (next week maybe) as the Santa rally may kick in (or may not!)..... 7613 is showing as the daily resistance, with the top of the 20d Raff channel here.
On the news front we have the ISM PMI at 15:00 in the US and then a speech from Powell at 16:00.
Not much more to say really, apart from good luck today and have a great weekend.
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