FTSE 100 Price Forecast & Technical Analysis – Capital Street FX
07 Nov 2022
European Stocks Edge Higher; German Industrial Production Impresses
European stock markets edged higher Monday, as stronger-than-expected German industrial production data offset the dashing of hopes of an easing of China’s strict COVID policy.
At 04:25 ET (09:25 GMT), the DAX index in Germany traded 0.9% higher, CAC 40 in France rose 0.3%, and the FTSE 100 futures contract in the U.K. traded largely flat.
Helping the tone Monday was the news that German industrial output grew by more than expected in September, expanding by 0.6% during the month, up from a downwardly revised contraction of 1.2% in August and ahead of economists’ forecasts for growth of 0.2%.
This came as something of a surprise as supply chain bottlenecks stemming from the war in Ukraine continue to hamper the country’s wider industrial sector.
That said, gains are limited following China’s health officials reiterating the country’s commitment to maintaining strict COVID-linked movement curbs, a policy which has contributed towards slowing growth in the world’s second-largest economy and a major export market for corporate Europe.
In the corporate sector, Ryanair (IR:RYA) stock rose 1.2% after the budget airline lifted its expectations for full-year passenger traffic, forecasting 168 million passengers during its 2023 fiscal year, up from a previous guidance of 166.5 million. This is also 13% higher than its pre-COVID levels.
FTSE 100 Technical Analysis: Daily Chart
In the daily charts, FTSE 100 is trading in up channel. FTSE 100 is currently trading above all SMA.
RSI is in over bought zone which indicates mild bearishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 7283.50 & the resistance level is at 7386.90.
FTSE 100 INDEX will trade in an up channel until there is trend reversal.
How to Trade FTSE 100 INDEX this Week:
FTSE 100 INDEX will follow the uptrend until there is trend reversal. So, remain bullish on FTSE 100 INDEX.