Technical analysis for FTSE 100 for 9th January 2025
Despite the negative backdrop in the UK regarding bond yields etc and the precipice that is looming (not much of a surprise!) the FTSE100 has hung in there, mostly as it's more internationally focussed. Unlike the UK mid-caps which took a battering yesterday. For today we may well see the test of the 8300 level that has been on the cards all week, and once again buying the dips is the play.
Initial resistance is at the 8295 level where we have the key fib for today, and then the 8317 R2 level. Just below that we do have R1 at 8285, but I wouldn't be surprised to see the bulls push for the 8300 area as they have managed to bring it up to this area this week. The 10d Raff channel continues to head up as well and the top of that is at 8350 for today... might be a big ask with the US closed for remembrance for President Jimmy Carter.
The FTSE100 2h chart has also gone bullish again, and the Hull MA support is at the 8252 level for today. As such any drop down to this area, along with the daily pivot at 8236 is a decent long area once again. 8226 is the 200ema on the 30m just below that as well. 8250 may well hold being the 30m green coral also.
If the bears were to break below the 8225 level then S1 at 8204 and the 8200 round number are next in the sights, with the key fib at 8185 below that. The bulls will be keen to try and break above the 8260 level though as that has capped all the recent rises.
If they were to really push on and push above the 8317 level the 8365 is R3, though again that might be a big ask for today.
The markets are going to be watching the gilts yield once again and if they continue to rise. Pretty pessimistic backdrop across the board stemming from that and more tax rises looming, and probably less room for interest rate cuts in 2025 as well (though that isn't a surprise).
Was a decent drop on gold yesterday from the 2669 level but the bulls have managed to defend the 2650 level and we may well see a rise and dip on that again today. The Dax40 looks weaker, and a slide down to the 20200 area to start with may well materialise.
Good luck, might be a bit slower today with the US markets closed.
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