Technical analysis for FTSE 100 for 12th December 2024
Well the bulls grabbed the errr, bull by the horns yesterday and managed to defend the 8250 daily support area which sets up the Santa Rally nicely now. They even managed to break above the 8300 level pretty easily which bodes well for a test of the initial resistance at the 8350 level today, and then 8375 once again above that. These are R1 and R2 respectively, but also the key fib and recent high as well, also respectively.
The 2h chart has now gone bullish once again with 8286 support from the Hull MA so they will need to defend that now, otherwise another test of the 8240 support level. We still also have 8220 lower down though not expecting to see that today.
It's all about central banks again and rate cuts though I still don't think that the BoE will be cutting any time soon, and probably not till February. Certainly not this month. ECB however will more than likely cut today, when they announce that at 13:15. We also have more USA job data at 1330. As such things will move around a bit then...
If the bulls were to break above the 8375 level then 8430 is R3 and also just above the 8427 daily level so I would expect a reaction here.
Generally though I am thinking that the bulls will remain in charge for now as we run into year end..... circa 8600 year end close still not totally off the cards......
However, if the bears were to break below the 8290 daily pivot then 8240 as mentioned, but a move below that will then likely test the 8200 area where we have the round number, but also a test of the now green daily coral line. As such I would expect this to hold any tests.
Generally then today I am thinking that we will mostly continue yesterday's climb - keep an eye on the 8350, 8375 and 8430 levels for resistance reactions.
Good luck today.
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