Technical analysis for FTSE 100 for 1st November 2023

The FTSE 100 ended trading largely flat, closing 0.08pc lower at 7,321.72. The FTSE 250 midcap index finished 0.38pc higher at 17,083.05. The commodity-heavy index was dragged down by BP (share price down 4.58pc) and Shell (down 1.86pc) after the former missed its third-quarter earnings estimate, hurt by a large drop in energy prices from a year earlier

Asian stocks edged higher on Wednesday ahead of a keenly awaited policy decision from the Federal Reserve later in the day, while the yen was stuck near one-year lows against the dollar as Tokyo ramped up intervention warnings.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.14% higher. The index has clocked three straight months of losses. Japan’s Nikkei was 2% higher.

The spotlight on Wednesday will firmly be on the Federal Reserve’s policy decision, with the central bank widely expected to hold rates steady. Comments from Fed Chair Jerome Powell will be scrutinised to gauge where interest rates are headed and how long they will stay higher.

FTSE 100 technical analysis for today, 1st November 2023

Usual story for the 1st with the new month money likely to flow in and help to push the FTSE100 up towards that 7400 key resistance level. We have R2 here for today, as well as the slightly higher 7417 resistance so I have split the difference and gone for a short mid way between them. The short yesterday played out well from 7370 as we got the pump and dump play out well for the month end, though the bears weren't able to crack the 7300 level.

For today we have initial resistance at 7365 with R1 here and close to yesterdays high, we could see a small pull back from here again as the early bulls bank some profits, and a drop down to test the 7336-7315 level which would likely hold as support.

Generally it looks like it will follow Monday and be a bullish day across the board today, especially as we head towards the new rate decision in the USA from the Fed. Forecast is a hold at 5.5% and that news is out at 6pm, followed by the press conference at 18:30.

We still have the daily resistance from the 25ema at the 7450 level which remains untested so continue to keep an eye on this level. A bearish reaction here is likely.

Below the 7315 level then 7297 is S1 and if the US bulls are strong today then we should see that area hold. The FTSE100 bulls will certainly be keen to hold the 7300 level as well.

It certainly feels like a buy the rumour sort of day, coupled with the new month money so buying the dips today is the general consensus. I would like to see that 7315ish area hold if it drops that low, and am also conscious of the seasonality - in theory we should see a decent bullish performance in the last 2 months of the year.

Not much more to say really, keep an eye on the key levels and good luck today.

Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting - Read more here

Recommended Broker for FTSE 100 trading and how to start trading using support and resistance

IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!

Membership, Trading Tips, Support and Resistance Levels with Live Trading

If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.

What you get

• Daily Analysis pre market open (sent around 7am each day) for FTSE 100, DAX40, Gold and S&P 500.
• Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
• Telegram live trading room and group membership for discussion and realtime trade updates

Keep up to date with new content, free sign up below with just your email address