Technical analysis for FTSE 100 for 23rd November 2023
Asian shares were flat on Thursday with markets holding onto their gains for the week as confidence grows that interest rates globally will head lower next year, while oil prices fell on the prospects for smaller-than-expected output cuts by OPEC+.
Shares in Asia struggled for traction and currencies were muted in holiday-thinned trading on Thursday after US stocks ticked higher and Treasuries fell overnight on data showing US consumers expect inflation to persist.
Equities slid in Australia, while those in Hong Kong and China fluctuated and South Korean shares gave up earlier gains. Japanese markets are closed for a holiday. Oil dropped for a second day after the surprise delay to the upcoming OPEC+ meeting, denting hopes that the cartel will intervene to tighten supplies.
Trading worldwide was expected to be quiet due to the Thanksgiving holiday in the U.S.
The U.S. market, which has priced out the chances of another rate hike in December, shrugged off strong weekly jobs data Wednesday night that may nevertheless reduce the prospects for quicker-than-expected rate cuts by the Federal Reserve, said Redmond Wong, Greater China market strategist at Saxo Markets.
FTSE 100 technical analysis for today, 23rd November 2023
7450 was defended and a portion of the long from yesterday is still running, though we haven't exactly rocketed up so far. It may be a fairly subdued day as the US markets are closed, and the ramifications from yesterday's Autumn Statement are digested. Generally I would quite like to see a rise towards that 7515 level once again, and a test of the resistance levels that remain in this area. Namely R2 for today and the key fib.
Above the 7529 level then the bulls would be looking to pull away and break R3 at 7552. However we have the 200ema on the daily at the 7524 level so I expect fairly strong resistance in this area once again.
The daily Raff channels are still heading up for the moment so the bullish trend continues. The US markets are also looking pretty strong at the moment as well, and again the Raff channels are heading up.
For the support side of the FTSE100 today, then 7450 remains (stop on the long is 7452) and then just below that 7442 is S1. However, if the bears were to break 7450 (as its been such good support being the 25ema on the daily) then they will more than likely drive it down to the 7420 area where we have S2 and the key fib for today.
Lower down than the bottom of the Raff channels come into play at the 7400 level. I am not expecting us to drop that low, and in fact a drift higher today towards the 7520 would fit the charts better.
So fairly simple plan today, continue to run the long from 7450 and see where it takes us today.
Good luck!
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting - Read more here
Recommended Broker for FTSE 100 trading and how to start trading using support and resistance
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership, Trading Tips, Support and Resistance Levels with Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE 100, DAX40, Gold and S&P 500.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and group membership for discussion and realtime trade updates