Technical analysis for FTSE 100 for 24th October 2023
The FTSE 100 closed down 0.37pc at 7,374.83 after hitting a two-month low earlier in the day. The commodity-focused index was dragged down by a sell-off in mining stocks as metal prices dropped.
Precious metal miners across the FTSE 350 dropped 3.17pc today, as rising US dollar and Treasury yields weighed on gold prices. Meanwhile, industrial metal miners tumbled 1.21pc as copper prices dipped on growing concerns about the Middle East conflict and rising inventories. The FTSE 250 midcap index finished 0.15pc higher at 17,058.99.
Chinese stocks outperformed Asian equities Tuesday after the nation’s sovereign wealth fund bought exchange-traded funds to shore up the market. Treasuries stabilized following a volatile session on Monday.
Asian shares were mixed after the lowest S&P 500 close since May, with equities paring declines of more than 1% in Japan, South Korea and Hong Kong. Oil eked out a gain as the next stage of the Israel-Hamas war remained unclear.
Asian equities slipped to their lowest in more than 11 months on Tuesday, while the dollar wobbled in cautious trading ahead of a slew of economic data that will provide clues to the next steps from the U.S. Federal Reserve.
FTSE 100 technical analysis for today, 24th October 2023
A decent bounce in the end off the 4190 SPX level yesterday who may well start to galvanise the bulls on the FTSE100 a bit more today. A possible rise and dip may well play out today and a test of the 2h coral level at 7450. Initial resistance though is at the 7399 level where we have the R1 level to start with, and also the round number.
The 30m chart is just on the cusp of going bullish as at 7am, and if the coral goes green that will have initial support at the 7350 level. A 100 point range would probably work quite well today!
The 7350 level held as support yesterday too, which has levelled off the Hull MAs on the 2h chart, and if the bulls have a go today we may well see that turn bullish during the course of today.
The big however is that the daily chart remains bearish, with the 25ema resistance at 7524 which could cap any rises in the near term.
Below 7350 the bottom of the 20d Raff channel is in play at the 7327 level and lining up with S1, so should we get this low then a long here is worth a go.
If we were to push past 7450 then 7470 is R3 prior to that 25ema on the daily.
I am really watching the 7350 and 7450 levels for today though.
Looking ahead, highlights include German GfK, UK Unemployment, EU/UK/US Flash PMIs, NBH Policy Announcement, supply from Netherlands, UK, Germany & US.
Earnings from ASM International, Orange, Puma, Logitech, Novartis, Barclays, Microsoft, Alphabet, Visa, Coca-Cola, Texas Instruments, Verizon, General Electric.
Good luck today!
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