Technical analysis for FTSE 100 for 31st March 2025
And off we go for another subdued and quiet week. Oh hang on, sorry, it's already started with fireworks. The S&P500 has taken a dive since Friday's close as war and tariff talk continues apace, while the FTSE100 is hanging in there as I write this at 8600. This level is S2 to start with today and being the round number may see a small initial bounce, towards the Hull MA resistance level at 8645 ideally.
Prior to that we have resistance at the 8625 level for the 30m 25ema, but hopefully the bulls are quick out the blocks and push that little bit higher. Above the 8650 level then Fridays high and daily resistance level at 8690 remains in the picture, though that could be a big ask for today. Above that then 8715 R2 is set, but unlikely!
The more likely scenario is having tested that 8690 level on Friday it marks the short term high and if the bears can break the 8600 level then a drop down towards the 8500 area is likely. S3 at 8508 ties in with the daily support at 8512, so should we see this area then a bounce here is worth trading with a long. Prior to that there is daily support at 8565 so we could see any early test of this level tee up a bounce. Certainly worth a tentative long.
The daily chart has also gone bearish again with the gap between the EMAs widening and as such we may well see some more pessimism abound this week. Might well be a weaker end of quarter after all too. That said, the S&P500 is heading for nice double bottom territory at 5500 which is the level it bounced from earlier in March. I am thinking that if we see 5500 again then it's worth taking a long here too, as 5506 is also S1.
Back to the FTSE100 and the bulls will certainly be keen for an initial bounce I am thinking and a hold of the S2 8595 level. A bullish Monday feels like it might be a big ask today given the geopolitical backdrop but you never know. Trump firing all barrels to start with with the usual tactic to then acquiesce on certain elements.
Generally today then it looks like a shorting the rallies day, and keep an eye out for a test of the 8650 level and an associated bearish reaction.
Good luck today.
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