Technical analysis for FTSE 100 for 5th March 2025
The bulls bought the dip yesterday and we managed to test the 8862 resistance level after the bell where we subsequently saw the inevitable drop as expected. That level is the line in the sand that the bulls will need to break now, as 8860 is also the current Hull MA on the 2h chart. They have defended the 8800 area though overnight so we may well still be on for a test of the 8930 area before long.
We have a lot more data out today which may well lead to more movement again, and it feels like the bulls may well resume control. The Ukraine peace deal is possibly back on, tariff wars are still up in the air, data is mixed and interest rates have been forgotten about. Though recession chatter is still lingering in the background!
Initial support today is at the 8800 round number again, and then S1 and the key fib below that at 8765. If we were to test this level then a long here is worth taking for a possible buy the dip scenario today.
If that should break though then a test of S2 and the bottom of the 10d Raff channel at 8692 is next on the radar. I am not expecting it to get that low today, as the 10d Raff channel remains heading upwards, as does the 20d Raff - bullish momentum resumes...
On the upside, the 8860 level as mentioned is first up, with 8891 R1 just above that. We also have the key fib here so we may well see a stutter here before any assault on the 8930 area. 8944 is also R2 for today, though that feels like it might be a big ask.... however with the volatility back in vogue I'm not ruling out larger swings than usual.
The S&P500 has really dropped since testing the 6100 area and the bulls will be keen to reverse that. We got a decent bounce yesterday off the 5730 daily 200ema, and its the first daily candle with a decent long tail, with is showing some buying pressure at this level. The bulls will need to break above the 5825 level initially to target a rise towards the 5886 level today.
The Dax40 is on the cusp on looking bullish for today if the bulls can manage to break the key fib at the 22859 level initially. The 30m coral is now green for the first time in a while and has support at the 22655 level. 22475 is the next support below that.
Good luck today
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