Technical analysis for FTSE 100 for 8th May 2025
A decent bounce yesterday off the 8540 support level and overnight the bulls have managed to crack the 8600 level. However we are sat at decent resistance first thing at the 8614 R1 levels, and we also have the red 2h coral here. As such I am expecting an initial drop down from here, probably to test the daily pivot level at 8573.
Along with the pivot we also have a cluster of other supports, namely the 200ema on the 30m, and also the 30m coral (green). As such I would like to see this level hold and set up a higher low from yesterday which bodes well for the bulls to push it up today.
We have the BoE rate announcement at midday (well just after) and it will surprise absolutely no one that it's likely to be cut to 4.25%. As such we may well see some buy the rumour sell the news kicking in. We also have the likely announcement of a US/UK trade deal later.
If the bears were to break below the 8563 level then 8534 is S1 and just below yesterday low, and as such would be a decent bounce spot. It's also worth noting that the bottom of the 10d Raff channel is at 8555 and the bulls will certainly be keen to try and defend today. I am however also still keeping an eye on the daily 25ema at 8460 now, as we may well see a test of that during May before more upside towards the 8900 area. Wars notwithstanding....
Lower down then the key fib is 8510 and 8493 for S2 - I am not expecting it to get this low.
Resistance wise then above the 8620 level, 8653 is R2 and R3 at 8691 - that feels a like a big ask but you never know, as a break of the 8620 2h resistance level will likely give the bulls a fair bit of momentum.
In addition to the BoE news, we have US initial jobless claims at 1330 so we could see some chop here. BoE governor Bailey is then speaking at 1415 following the rate cut announcement.
The ball is in the bulls court on the Dax40 and S&P500 as well and they will also need to defend the likely initial drop. The Dax40 is also on resistance at 23300 as I write this, and the S&P500 is on its resistance at 5680. A drop down to the 23190 and 5621 levels respectively and then a bounce from these levels would make sense (famous last words)!
Good luck today.
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