Technical analysis for FTSE 100 for 15th January 2025
Inflation figures have just come out while writing this and they aren't as bad as feared, falling slightly last month. The consumer prices index (CPI) dropped to 2.5pc in December, according to the Office for National Statistics (ONS), which was lower than 2.6pc expected by economists. It follows two consecutive rises in the annual rate of inflation in October and December, which has pushed the pace of price rises back above the Bank of England’s 2pc target.
Fears about rising inflation have been behind a surge in government borrowing costs since the start of the year, which has squeezed the headroom left by the Chancellor in her Budget.
Initially today the bulls will be looking to build on the recent strength and the bounces off the 8180 support. Daily pivot is the main support to start with at 8213, and that also links in with the 30m coral support here, which has now gone green again.
If the bears were to break below this then 8180 remains support, and then 8151 below that where we have S2 and the key fib. The Raff channels continue to head up and if the bulls can break above the 8252 level today (red 2h coral here) then we may well see a bit more upwards movement in the second half of the month.
8185 is also S1 for today, so also helps support that area if it were to test that again. The only spanner in the works is that it would be the third test of the 8180 area and the 3rd test is usually the one that breaks..... Let's see if they defend 8214 instead.
For the bulls, they will be looking to break the 8252 as mentioned as this is also R1 in addition to the 2h coral, and then 8265 key fib above that. Ultimately they will be looking for a rise towards the 8325 area again, and having dropped off that previously it would in theory be strong initially.
Above that then the 8348 level is next up which is the next daily level of note. Can't see it getting much higher than that today.....
Now the UK inflation is out of the way, attention will turn to the US news at 1330. Expect some volatility at this time as well. We also start to get earnings data out today with the US banks starting us off - Citi and JPMorgan. Forecasts are positive for stronger earnings...
Good luck today, keep an eye on 8250 and 8320 for resistance; 8215 8185 8155 for support.
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