Technical analysis for FTSE 100 for 26th October 2023
The FTSE 100 moved 0.33%, or 24.64 points, higher to finish at 7,414.34. It was another day of choppy trading for markets in Europe with the latest company results indicating a range of fortunes for various businesses over the last quarter. Banking stocks had a positive day after an update by Lloyds helped to improve sentiment after weakness earlier this week.
America’s tech-focused Nasdaq exchange dropped 1.8pc and and the S&P 500 dropped 1.06pc on Wednesday. Google’s parent company Alphabet slid 9.1% to a three-month low, as its cloud business crawled to its slowest growth in at least 11 quarters and missed revenue estimates. Meanwhile, Apple fell 1pc and Amazon fell 4.8 pc as US Treasury yields climbed after data showed accelerating new home sales in September, encouraging expectations of prolonged high interest rates heading into 2024.
Asian stocks slid to 11-month lows on Wednesday, U.S. futures dropped and the dollar surged as Treasury yields spiked back toward peaks on fears that U.S. interest rates will stay high.
Asian stocks are set to tumble to their lowest in nearly a year while US futuresextended declines as a batch of poor corporate earnings soured sentiment. Currency traders were on edge after the yen weakened past a key level.
FTSE 100 technical analysis for today, 26th October 2023
War fears still weighing on markets and overnight IDF tanks have rolled across the border. The S&P500 continued to slide on worries over escalation, while the FTSE100 is still hovering around the 7400 area mainly. Initially today we may well see a kick up towards the 7400 level from the 7360 overnight area, to test the daily pivot and the red 30m coral.
Above this then the 7415 is 200ema on the 30m is pretty close. Ultimately above that then we still haven't tested the 25ema on the daily chart which sits at the 7500 level today. Doubt we get that high but if we did then a short here is worth a go.
Prior to that though of course we 7457 for R2, though R1 at 7421 and just above that 200ema may well rebuff the bulls early assault.
The 2h chart has actually gone bullish and has 7333 as support from the Hull MA, so just above the recent low - as such should we drop down to here then a bounce is likely, and its worth a long in this area.
7331 is also S2, and 7341 for the key fib - so a couple of other elements to lend support here.
News out at 1330 today is the US GDP Growth Q3 with a forecasted 4.3% up from 2.1% previously. That may well help the bulls if that came to pass, and more upside this afternoon.
Also on the news front we have the ECB interest rate decision at 1315 - forecasted to stay at 4.5%.
Good luck today.
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The US economy grew at its fastest pace in almost two years in the quarter to September amid a boom in consumer spending.
The economy expanded by 4.9pc on an annualised basis in the third quarter against expectations of 4.5pc growth.
This is a jump from 2.1pc in the second quarter and the strongest expansion since the fourth quarter of 2021 when the economy was rebounding from lockdown.
The figures highlight the resilience of households and businesses despite a rapid increase in interest rates.