Technical analysis for FTSE 100 for 6th May 2025
Off we go for a slightly shortened week, and we could well be on for a bear Tuesday, at least initially. We had a stop hunt looking overnight spike to the 8685 level and a test of the key fib at the 8678 level. The bulls would probably quite like to get it back to to that level again, and will certainly still be looking to build on the recent strength that ended April. As such we are still in buy the dip mode.
The 2h chart remains bullish to start with, and we have Hull MA support at the 8620 level, where we are as I write this. If the bears were able to break below this though then 8597 is S1, and as we have the round number here, we could see this defended. A break of this will likely lead to the 8565 level where we have S2 and the key fib, and should we get this low then a bounce here looks like it will play out well.
The daily chart has both Raff channels heading firmly up now, along with the green 2h coral at 8570 now.
If the bulls do buy the dip today and defend the various supports then a rise to 8650 initially for a test of R1 looks likely, and then that spike high as mentioned at the 8685. Ultimately of course they will be looking for a test of the 8700 round number and as mentioned a few sessions ago, that defence of the 8400 would likely lead to 8700. That seems to be playing out pretty well at the moment.
It does also keep the 8900 level in play at some point as well – maybe a push there during May before an attempt at the “sell in May and go away” and subsequent drop.
If the bears were to break below the 8560 level today though then 8436 is the 25ema on the daily and the next really key level. I am obviously not expecting that today, especially as the 8544 level is S3 and likely to hold.
On the news front we have PMIs out at 0930 so may well see a bit of volatility then, and also bear in mind that we will likely see the 0.25% interest rate cut on Wednesday. In the US we have the Fed tomorrow with them likely to hold steady on their interest rate.
Good luck today.
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