Technical analysis for FTSE 100 for 4th December 2024
General plan for today is to keep running the 8380 short for a bit longer! Just taken some more profit at the 8333 level. Initially today it looks like we may well get a drop down a bit further to test the 8312 support area, where we have the 30m 200ema, S1 and the green 2h coral.
The Raff channels continue to head up and overall the 2h chart is bullish, so longer term buying the dip is still the preferred play for a possible year end rally.
Initial support then at the 8312 area, but if the bears were to break below this, and as they currently have the momentum having got the bearish reaction we wanted at the 8388 level, they will be looking for 8260, and also another test of the 8240 level that we bounced off recently.
That said 8274 is S2 for today so we may well see a modest reaction here first if we do break the 8300 key fib level.
Resistance wise, initially 8360 is just above the daily pivot but also the red 30m coral, and I think that if we do get the bounce off 8312 then it may falter here. However, should the bulls push past 8361 then 8388 once again for a double top, and then the 8430 R2 level is possible, though feels like a big ask. 8413 is also the key fib for today so another one to watch for a reaction.
Political backdrop has gone a bit pearshaped around the world again with France and now South Korea, as well as yet another fight starting in Syria this time. On the news front today, we have the PMI data out at 0930 so may well see a bit of chop then, but the big one will be the ADP employment in the USA at 1315 - forecasted to have dropped to 166k from 233k previously. We also have Powell speaking at 1845 so traders will be looking for rate cut (or not) thoughts then - again we could see some chop.
So, bit of a dip and rise I am thinking for today, keep an eye on the 8312 support area.
Good luck today.
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