Technical analysis for FTSE 100 for 6th October 2023
The FTSE 100 closed in the green, ending a three-day losing streak. The blue-chip index finished up 0.53pc or 39 points at 7,451.54. The FTSE 250 midcap index ended 0.61pc higher at 17,599.98.
Asian shares rose before a monthly US payrolls report forecast to show employers slowed hiring month, potentially easing pressure on the Federal Reserve to raise interest rates again.
Equity benchmarks in Australia, Japan, South Korea and Hong Kong all climbed. A region-wide share gauge headed for its second daily advance, which would mark the first back-to-back gain in three weeks. The Hang Seng Index jumped as much as 2.3%, but is still set for a fifth week of losses. Chinese markets remain shut for a week-long holiday.
A lull in bond selling has stretched into Friday, but may not last the day as investors waited on U.S. jobs data that could add to the case for keeping interest rates high for some time.
Oil's flip from surging to sliding has also provided respite, with Brent crude futures at $84.50 a barrel, some $13 or 13.5% cheaper than last week's 11-month high.
FTSE 100 technical analysis for today, 6th October 2023
And here we are with another NFP Friday. Be cautious today! The forecast of 170k is a slight dip on last month while the unemployment rate is forecasted at 3.7%, also a slight drop. The news is out at 1330, and we may well see a buy the rumour, sell the news day play out today.
The bulls have defended the 7400 level well following the test of 7386 on Wednesday, so that is the line in the sand still. A break below that will likely see a slide down towards the 7300 level.
Initially today though I am thinking that the 7450 are will hold any initial test as support is here from the daily pivot and the 30m coral which is now green. The bulls will be keen to build on yesterdays strength as well, and as mentioned yesterday we may well have the short term low locked in now. That said, the daily EMAs are bearish so the bulls will need to break above the 7535 level as that is the key resistance level for the moment.
7486 is the 30m 200ema to start with so the very first resistance level in play as I am writing this, with a test of 7500ish likely above that - R1 and the key fib are both in this area.
Ultimately I would like to see a rise to that 7535 level though to test R2 and the daily resistance - a drop of this would then make sense as we see some profit taking ahead of the weekend,
NFP will be the potential spanner in the works to the best laid plans though so do remember that at 1330.
Above 7535 then the bulls will likely have a go for 7565 which is the next daily level of note, with R3 at 7583 - though that may well be a bit of a big ask today.
The S&P500 and Dax40 charts remain bullish for the moment, particularly the 2h ones with 4237 and 15050 supports respectively.
So looking at a rise and dip to play out today. Good luck and have a great weekend.
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