Technical analysis for FTSE 100 for 8th December 2023
The FTSE 100 was little changed on Thursday with investors on the sidelines ahead of U.S. payrolls data which could drive Federal Reserve rate cut expectations, while shares of Games Workshop and media firm Future pulled down the midcap index.
The blue-chip FTSE 100 was also steady on the week as traders assessed economic data from across the globe and looked ahead to Friday's monthly U.S. jobs report.
The FTSE 100 eased 0.02%, with oil stocks among the worst performers as Brent crude prices held under $75 per barrel.
While the major central banks are seen holding interest rates next week, traders expect the Fed and the European Central Bank to start cutting interest rates early next year with the Bank of England lagging behind.
Interest rate future markets show investors believe the first cut from the BoE might not happen until June, compared with March for both the ECB and the Fed.
Overnight the Nasdaq finished 1.4% higher after a 5.3% jump for Google parent Alphabet as markets cheered the launch of its newest AI model.
FTSE 100 technical analysis for today, 8nth December 2023
The bulls are hanging in there and keeping the price above the 7500 which bodes well for more upside. The big event today will of course be NFP at 1330, with 180k forecasted, along with the unemployment figure as well, due to remain the same at 3.9%. As such expect some volatility then and we may well see a buy the rumour, sell the news sort of day. Coupled with a drop at the end of the day with a bit of profit taking ahead of the weekend.
Initially the FTSE100 is looking positive and a rise towards the 7555 resistance level looks likely first thing. We have R2 here, and also the key fib, though there is daily resistance just above at 7567. As such a small overshoot and drop back may well play out. Above the 7565 level then the bulls will be aiming for the 7600 round number and a break of R3 at 7585. That might be a big ask for a Friday but with NFP in play for today anything is possible. And it's a Friday!
Support wise the 7515 is looking key to start with as we have the Hull MA here on the 2h timeframe and the first test of that since it's gone bullish again. As such I would like to see a hold of that first thing to get the rise towards the 7555 level.
Below 7515 then 7500 round number, and then more significantly, 7482 below that. 7451 is then the daily coral line and should we get that low we should see a bounce here once again. That coral line is currently red, but may well change to green today.
The S&P500 2h chart is also bullish and has decent support at 4568 with both the coral and Hull MA here, so any drop down to this level could well then reverse at that point.
So, a few key levels in play today but it can pay to be a bit more cautious today as it's a NFP Friday. Good luck and have a great weekend.
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