Technical analysis for FTSE 100 for 3rd November 2023
Rate-sensitive homebuilders and real estate stocks lifted the FTSE 100 into the green as the Bank of England kept interest rates unchanged. The exporter-focused FTSE 100 climbed 1.42pc to 7,446.53. Meanwhile, the midcap FTSE 250 index jumped 3.38pc to 17,767.30. The benchmark FTSE 100 logged its best day in over three weeks, while the mid-cap index marked its best session since July.
Stocks and currencies in Asia gained along with a weakness in the dollar, as traders embraced riskier assets on prospects the Federal Reserve’s tightening cycle is nearing an end. Equity benchmarks in Hong Kong rallied more than 2% while shares in Australia and South Korea climbed about 1%. The MSCI’s Asia benchmark was on track for its best week in two months. Markets in Japan are closed for a holiday. US equity futures slipped following underwhelming results from Apple Inc.
Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes.
U.S. jobs data due later in the day is the next major focus. Economists polled by Reuters expect the U.S. to have added 180,000 jobs in October
FTSE 100 technical analysis for today, 3rd November 2023
The bulls managed to keep the momentum yesterday and we are just shy of the 7500 to start with. They will be looking to end the week strongly so we may well see some more upside today but we have daily resistance at the 7515 level with the top of both the Raff channels here. As such any early push up to this area may well then see a drop back down and some buy the dip action later on, as long as the supports get the desired reaction.
7506 is also R1 to start with but a slight overshoot and test of the Raffs would make sense.
Above the 7516 level then 7537 is the daily 200ema and the next key area and should the bulls manage to push on today they will be looking to end the week above the 7500 level. The seasonality is playing out well with the bullish November and December kicking in nicely. Buy the dip firmly entrenched in the bias for the moment.
Support wise, then the 7438 daily pivot is the first one, with the 7392 level below that for the key fib and the 30m 200ema. The bulls will be desperate to hold and defend any drops down to the 7400 area today so should we test the S1 area here then it will more than likely bounce.
The main news event is of course NFP at 12:30 with the forecast being 180k, and the unemployment rate for October remaining at 3.8%.
As it is an NFP Friday then its a good day to be slightly cautious as they can be a bit strange sometimes - lower stakes basically.
The 2h chart remains bullish for the moment and a test of the Hull MA at 7400 would also fit. The green coral is slightly lower on that time frame at the 7360 level. The 10d Raff has changed to start heading up now following the bounce from 7250 and with the top of that coinciding with the top of the 20day for today at that 7515 level. Hence thinking that we will see a reaction here on the first test.
Good luck today and have a great weekend.
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