Technical analysis for FTSE 100 for 10th June 2025
Not a massive amount of excitement yesterday but the bulls failed to break above the 8850 level so that remains the line in the sand for the moment, with the 8872 and 8895 levels as key resistance above that. We may well see those both those levels tested today and then a subsequent bearish reaction so worth shorts off both of them. It would be good to get near the 8900 area as well as that would bode well for some further upside later this week, especially if there are some positive development on the US-China trade front. 8873 was also the highest closing price earlier this year.
Retail sales rose by just 1pc in the year to May, according to new figures from the British Retail Consortium (BRC). The study, which suggests households are cutting back, will pile fresh pressure on Rachel Reeves amid concerns that the economy’s surprisingly strong momentum in the first three months of 2025 is evaporating. That may well become self fulfilling and further belt tightening during the course of this year.
On the support side of things, then the 30m 200ema is the main level initially at 8816 and thats is just above the S1 8812 - the bulls will be keen to defend this and ideally pull away from the 8800 level with a decent close today, so should we get a drop back later expect to see a possible bounce into the close.
If the bears were to drive it below the S1 level then we will more than likely slide to S3 at 8771 as we also have the key fib here and I would like to see this level hold as support for some more bullishness tomorrow.
The UK unemployment rate has just been released at 4.6% as per estimates, and up from 4.5% previously.
The S&P500 has an an early drop down to the support at 6000 this morning and it would be good to see this hold for a rise to test the 6055 area where we have R3. A drop off that would then make sense later, as we have a bullish 2h chart currently. The Hull MA support is at 6008 so the bulls will need to be quick out the blocks today with their defence. Below 6000 then 5972 is S2 and the key fib and would likely see a bounce. 6050 is the key fib, and just below that R3 level at 6056 hence thinking this could be a fairly key area for shorting.
The Dax40 remains more bearish, with the Hull MA 2h resistance now joined by the red coral at 24289. The key fib is a bit higher at 24340 and this could be a possible target for the bulls if they fight strongly this morning. They will be looking to defend the 24188 daily pivot level initially. If the bears take charge then a drop down to the key fib at 24016 may well play out, and with the 24000 round number also lending support we could see a bounce around this area.
Generally it looks like a rise and dip across the board and a bit of bear Tuesday to play out later on.
Good luck today.
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