Technical analysis for FTSE 100 for 6th December 2023
The FTSE 100 fell for a second session on Tuesday, as miners came under pressure from weaker gold prices and Moody's downgrading its outlook on China, while Barclays dipped after Qatar Holding cuts its stake in the lender. Barclays fell 2.5% after Qatar Holdings, one of the bank's largest shareholders, moved to sell around 510 million pounds ($644 million) of its stock.
The blue-chip FTSE 100 closed down 0.3%, with precious metal miners acting as the biggest drags as gold prices eased from all-time highs in the previous session. Industrial metal miners dropped 1.3%, mirroring losses in copper prices, after Moody's cut its outlook on China's credit ratings to negative from stable, citing concern over the impact of surging local government debt and a deepening property crisis.
A survey showed activity in Britain's services sector grew in November after three months of declines but companies reported an uptick in prices charged, a potential concern for the Bank of England ahead of its interest rates decision next week. Investors have priced in the Bank Rate remaining at 5.25%.
Traders are also awaiting a slew of U.S. labour market data this week to gauge the next policy moves by the Federal Reserve.
US equity futures advanced after a further labor-market slowdown reinforced speculation the Federal Reserve will cut interest rates next year to avert a recession. MSCI’s Asia Pacific Index - a gauge for benchmarks in the region - rose the most in three weeks, with Japanese equities leading the gains. European stock futures advanced 0.4%.
FTSE 100 technical analysis for today, 6th December 2023
The bears only managed to drop it to just above 7460 yesterday and the bulls have fought back once again, with 7500 proving to be the key battleground.
Initially today we may well pop up to test that 7533 area where we have R2 and the key fib and also a triple top area with the recent highs. As this would be the third test of this level we may well see it break shortly as the December strength keeps rolling through. Strong year end still on the cards!
The 2h chart is bearish to start with but a break of 7513 will be key there (that's also R1 though) and the shorter timeframes are more bullish anyway, namely the 30m as you can see below. The daily pivot, 30m coral and 200ema are all decent supporting lines at the 7485 level, so the bulls will be keen to defend this for a push up today.
Above 7535 and the bulls should be on course for the 7600 level, and a test of the daily resistance here. The Raff channels are still heading up and we are mid point on both of then at the moment. The top of the channels is 7600 for the 10d and 7615 for the 20d. Might not get to them today but they are certainly optimistic and bullish currently.
7560 is R3, so could be a stumbling block later if the bulls do break 7535.
Support wise, below the 7485 then 7460 (yesterday low) still, with S1 at 7462 and then the 7432 area below that with S2 and the key fib here.
Generally it looks positive and the 2h S&P500 chart is bullish - with decent support at the 4570 level - a hold of this and then some upside will likely keep the bulls going in the rest of the world. The Asian markets had a bullish Wednesday, traders betting on rates having peaked and possible cuts next year. All eyes on NFP on Friday as well - 180k forecasted v 150k previously.
So watch for 7485 support, 7535 and 7560 resistance.
Good luck today.
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