Technical analysis for FTSE 100 for 16th January 2025
The bulls managed to retest the 8325 level after the bell where we stalled once again, however we may well see some more upside today towards the 8350 and 8400 levels both of which are key daily resistance above 8325. The US bounce from Monday's low (and pre election gap close) continues apace, and the US bulls will be aiming for 6000+ on the S&P500. 6035 is the red daily coral so the main level to keep an eye out for above 6000.
Whilst the FTSE100 Raff channels are both heading up, the S&P500 and NASDAQ ones are still trending downwards so the bulls will certainly be looking to break past the daily resistance level in the US - 6000 being that key level.
For the FTSE100 today then we may well get an initial rise to the 8350 level, and a test of the key fib and daily resistance. 8363 is R1 just above this but with the bulls having brought it up to these levels then I am more inclined to think they will aim for R2 at 8404 - and just above that daily level at 8395. This area looks like a decent short area for a modest pullback in the overall upwards trend. As it has done for most of January buying the dips is still the preferred play for longer holding trades.
If they were to break above 8404 then the top of the 20d Raff is at 8445 though I think that might be a bit optimistic for today.
GDP figures have just been released while writing this. Britain’s economy grew by less than expected in November, official figures show, in a setback for Rachel Reeves as she battles to balance the public finances. Gross domestic product (GDP) expanded by 0.1pc during the first month after the Chancellor delivered her Budget, according to the Office for National Statistics (ONS). Analysts had expected a 0.2pc expansion.
On the bearish side, if the bears were to break below the 8290 level then I am looking for a bounce at 8245 as we have a cluster of supports here on both the 30m and 2h charts, including a test of the now green 2h coral. As such I would expect this level to hold. Failure to do so though and then a slide down to the 8173 S2 level and an overshoot of the bottom of the 10d Raff would be on the cards. I am not expecting it to be massively bearish today though (famous last words).
The next slug of news is at 1330 with US jobless claims being the main one. Expect some volatility then as well.
Good luck today.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting
Recommended Broker for trading - MT4/5, web and mobile
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership, Trading Tips, Support and Resistance Levels with Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
Keep up to date with new content, free sign up below with just your email address
