Technical analysis for FTSE 100 for 7th March 2025
It's safe to say that the bears are in control at the moment as the slide from 8900 continues and the S&P500 looks set to test the 5600 area before any meaningful bounce. The FTSE100 may well put in an initial rise this morning though to test the daily pivot at the 8695 level before some more profit taking and risk off ahead of the weekend. We are just the bottom of the 10d Raff at 8640 as I am writing this so we may well see this act as a spring board to start with.
Of course it's NFP Friday once again so expect a lot of chop today and a possible buy the rumour sell the news pattern once again. The news is out at 1330 and the forecast is a slight uptick from previously, at 159k. Unemployment rate expected to remain at 4%. We also have Powell speaking at 1730, and Trump at 1830 so some volatility to end the week is highly likely!
If the bears were to break below the 8640 level then 8590 is S1 but there are also a cluster of supports at the 8610-8620 area so a long here may well be worth a go. With daily support at 8610, and the daily green coral at 8615 we may well see this hold.
If we break below 8600 then the bears will be aiming for the lower daily support at 8510, and just below S2 at 8523, an area that I would like to see hold for a bit more of a sustained bounce. That may well tie in with the S&P500 testing the 5600 area.....
Above the daily pivot at the 8700 area then the bulls will be looking to retest the 8761 area where we have the R1 level and also daily resistance. If we were to see this price then a short here is worth a go ahead of the weekend. We do however have the 200ema on the 30m chart in the way at 8741, and also the key fib here, so that could cap the bullishness prior to that higher level.
The AS200 had a bearish session and with NFP today we may well see some caution today as well. The 2h S&P500 chart is bearish as you would expect with the 5755 level being the Hull MA currently, having held as resistance overnight at 5766. The 5726 200ema on the daily held as support though so that will be the line in the sand that the bears need to break today, which would open up a test of S1 at 5698, as well as the round number.
So, be slightly cautious as its NFP Friday. Good luck and have a great weekend!
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