Technical analysis for FTSE 100 for 17th December 2024
Cracking drop off the 8305 resistance area yesterday in most definitely not a Bull Monday, and it eventually tested the 8255 level just before the close. The modest bounce there fizzled out, and overnight we have seen the 8225 support area instead. The bulls will be keen to defend this today otherwise it could slide down as low as 8170 which is the next key daily support area.
That said, we have the 8200 area flagging up a few key levels with the green daily coral here (first test since going green), S1 and the key fib. As such, if we move below 8220 I would like to see a bounce here. The Santa Rally is elusive so far! Maybe the Fed can make it appear tomorrow.....
If the bulls do step up then a rise towards the 8290 area would be good, and again there are a cluster of resistance levels around here - 30m 200ema, R1 and its also just above the 2h Hull MA, sitting at 8275 currently.
With the drop yesterday the 2h chart is bearish once again and also has a red coral at 8289. As such should the bears want to fight, this area is certainly looking like a decent shorting area once again. A rise and dip may well play out well today in that case, with bear Tuesday playing out later. It was interesting that while the S&P500 was rising yesterday the FTSE100 was dropping - front running and also maybe more reflective of the UK.
Light on the UK news front today - some earnings data has just been released showing a small uptick but whether that follows through into more spending remains to be seen. At 1330 we have the US retail sales data which will include all the Black Friday sales so should be decent. Maybe!
The FTSE100 daily chart is a bit of a mixed bag - 20d Raff heading up, 10d Raff heading down and we have moved below the 25ema after a fairly poor bounce on the first test of that. The one saving grace is that green coral at 8205 so keep a close eye on this area. 8190 is also the bottom of the 20d Raff so this area should hold, at least initially..... we will likely find out today!
The ASX200 had a decent bounce and then consolidated which may well help the FTSE100 follow suit. In theory we are still in buy the dip territory, but getting the buy in level is still key.
Good luck today, watch for the 8200 support area, 8170 below. 8290 area for resistance.
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