Technical analysis for FTSE 100 for 23rd January 2025
Was a bit slow to get going but the short from the 8570-80 resistance zone played out well in the end and the bears have almost managed 8500. That has changed the short term sentiment to look more bearish and the 30m chart suggests selling the rallies again. Initial resistance is at the 8537 daily pivot and the 30m coral is also red and has resistance here.
If the bulls were to break above this then a rise towards the 8565 R1 level, and then a double top with the 8580 level from yesterday could play out. However, with the S&P500 also sliding from 6100 then we may well see some cashing in/profit taking of the recent bounce and see what else emanates out of the Davos meeting.
The FTSE100 2h chart remains bearish with 8601 as resistance from the Hull MA so if the bulls push on today then keep an eye on a reaction at this price. The daily Raff channels are still bullish though and heading up steeply, the bottom of the 10day Raff channel at 8450 would likely help the "buy the dip" longer timeframe crowd.
Talking of support, initially we have the 30m 200ema at 8500 then the key fib at 8474. If these break the a test of S2 as 8464 would tie in with the 10d Raff mentioned and would be a good spot to try a long for a possible climb back above the 8500 level.
If the bears were to break below the 8450 level then S3 is at 8418, and the round number of 8400 would help see a reaction this area. As mentioned on the longer times frames it's still buy the dip so we would likely see a decent move once it starts to climb again.
For the S&P500 the 2h chart has also gone bearish and has the 6100 as Hull MA resistance, along with 6092 as the red 30m coral. As such we may well see the bears try again from this zone, and a move down to the 5975 area to test the daily EMA support may well play out. If that holds it should then see a decent climb as well.
We also have Trump's speech at 1600 so likely to see some volatility then! 1330 also see the US jobless claims figures out.
Good luck today.
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