Technical analysis for FTSE 100 for 4th September 2025
The bulls have managed to pull the FTSE100 away from the 9100 level and we are now coming into strong resistance at the 9207 area which may well stall any early bounce. Ultimately today I am looking at a potential rise towards the 9237 R2 level, and we also have daily resistance here, with the key fib at 9222 splitting those 2 levels.
Initially the bulls will be looking to defend any drop down to the daily pivot at the 9158 level and I am thinking that we may well see a decent bounce off this, at least on the first test anyway. Should the bears break this level then a slide back down to the 9138 Hull MA on the 2h, and possibly as low at 9100 again.
The bulls however will be looking to break above the 9240 level as that will likely then see some further upside towards the 9300 level again. The 20d Raff channel continues to head up though the bulls will need to break above the top of the declining 10d Raff channel at 9214 with some conviction to keep the short term bullish momentum going.
On the UK news front, the Chancellor is under pressure about debt, IMF bailouts and the 26th November budget while Rayner is on the ropes over her tax dodging, and Kier's reshuffle has been drowned out. Today sees the release of construction PMI and a forecasted rise to 45.2 from 44.3 previous. Though in other construction news cement production has crashed to a 75-year low in a blow to Labour’s aim to kickstart housebuilding across Britain. Only 7.3 million tonnes of cement, the main ingredient in concrete, were made in the UK last year, the lowest level since 1950.
At 1330 we have the US initial jobless claims, and ADP at 1315, so expect some volatility around then.
The S&P500 has resumed its bullish overtones as well as the bulls fight back from the bearish start to September, and they will be looking to push past the 6470 area where we have R1 and a likely spot for the bears to drive it down from today. That said, I would like to see the daily pivot hold again at 6442. Below this then the Hull MA is lower support at 6427 so watch this area for a bounce if we do break the pivot.
Similar on the DAX40, with the daily pivot at 23602 for initial support, and the 2h Hull MAs are trying to cross into a bullish mode. 23750 is strong resistance though so shorting any test of this level is worth a go, and also shorting a break of the 23600 level. This index is the weakest of the 3 with bearish daily EMAs and both Raff channels declining, so it is still in short the rallies mode.
Good luck today.
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