Technical analysis for FTSE 100 for 6th November 2024
In a boost for markets, certainly in the USA, Trump looks to be on course for a second term in the White House. Gold has continued to drop off the 2750 level as well, while cable has also dropped (which in turn helps the FTSE100).
Initially the bulls need to break the 8255 level as that will open up the likelihood for a rise towards the 8282 R3 level and also opens up 8333 which is the daily resistance and just above 20d Raff channel top at 8320. 8287 is also the daily coral line, so we could see an early falter here if we pop though 8255.
Generally it's all looking positive though the FTSE100 will shift focus towards the rate decision tomorrow and a possible cut.
Support wise, the 2h support at 8155 held from yesterday and has now seen a decent bounce though it was slow to get going. It's also tested that MA support line overnight which had risen to the 8165 level. The 2h coral is now also green, with 8153 support. Its buy the dip territory still, as the markets embrace the likelihood of a Trump victory.
We are looking to open up at around the 8250 area, so a drop down to the 8213 R1 level (backtest) could play out, with the daily pivot at 8181 below that looking a decent long entry level should we see it. That said, the bears are certainly going to be on the back foot today.
Germany has also risen sharply and is just testing the 19453 resistance level to start with - again we may well see a dip and rise play out on that as we are also testing the top of the 10d Raff channel. Again, the daily pivot at the 19237 level would be a good long entry.
So, let's see how the remainder of the results come in, and I am looking at a dip and rise scenario today.
Good luck.
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