Technical analysis for FTSE 100 for 24th November 2023
The FTSE 100 rose 0.19pc Thursday to 7,483.58, with quality assurance firm Intertek (up 3.42pc) and engineering company Weir Group (up 1.81pc) leading the rises. Vodafone had the biggest decline (down 5.41pc). The FTSE 250 closed with almost no change at 18,480.83, up 0.0036pc.
Shares in Asia were mixed while Treasuries fell after declines in European bonds, eroding a November rally in US debt. Oil extended losses. Hong Kong and mainland Chinese equities dropped, reversing Thursday’s rally inspired by Beijing’s widening property rescue campaign. Japanese stocks rose in catch-up play after a national holiday, while those in Australia also gained. US futures contracts were steady.
Asian shares were dragged lower by losses in China on Friday and in the absence of guidance from Wall Street, which was closed for the Thanksgiving holiday, while the dollar stayed on the back foot and Treasury yields climbed a touch.
The holiday lull is likely to extend to Europe, with EUROSTOXX 50 futures mostly flat. Both S&P 500 futures and Nasdaq futures were also little changed.
In geopolitical news, Israel and Hamas started a four-day ceasefire on Friday. The militants are set to release 13 Israeli women and child hostages later in the day and aid will flow into the besieged Gaza enclave, the first pause in the near seven-week-old war.
FTSE 100 technical analysis for today, 24th November 2023
As expected it was a bit lacklustre yesterday with the US markets closed. Today may see a bit of a kick up as we could see some buying after the holiday (tips swapped over the turkey!). For the FTSE100 that may well see us pop through the 7500 area once again, but this is the first line of resistance in play today.
To start with the 30m chart is bearish, with the EMAs suggesting an initial drop down and most likely another test of the 7450 area. S1 is at 7456 to start with, and as such we may well see this hold should it drop down to there to start with. Or possibly just below as 7448 was the recent low.
If the bears were to break below the 7444 level which is the next key daily support then a further slide ahead of the weekend may well play out, with a test of the 7409 S3 level. However, with the US returning, a ceasefire/Hostrage release in progress, the news flow is a bit more positive. We have even had Biden and Xi pictured together!
On the upside, above the 7500 level then 7520 still remains fairly key and the double top area, with the daily 200ema at 7524 for today. As such, the 7500 to 7525 resistance zone is still very relevant. A break above 7525 though and the bulls will be able to push on well, and the next key level is 7565. Might be a big ask to add 100 on a Friday but as they are usually weird then you never know....
The 2h S&P500 chart has gone bearish and we still look like we may experience a modest dip on that to test the rising daily support, now at 4430, with the 25ema here. 4567 is the key resistance level on that to look for, however November has generally been pretty bullish for the US markets so far. If we do get a drop down to the daily support then a bounce from here into year end would certainly fit well and play out a Santa Rally.
Nothing too major on the news front today apart from the US PMI at 14:45, so really just keep an eye on the key levels - 7445, 7410 for support. 7500, 7525, 7565 for resistance.
Good luck today and have a great weekend.
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