Technical analysis for FTSE 100 for 7th July 2025
The USA returns from their extended weekend and so far the S&P500 futures are fairly positive with a gap up from Friday's close of 6230. As such we may well see a small dip and rise initially as they close the gap. The FTSE100 will be looking to defend the 8800 level once again and be attempting to push up towards the 8850 resistance level with a bit of a bull Monday tailwind.
That 8850 may well be a tough nut to crack still for the bulls but above that then ultimately they are still looking at the 8892 resistance level. We have some fairly bunched R1 to R3 levels today and as 8852 R2 lines up with the 8850 daily resistance level we may well see any initial test of that today trigger some selling. It's also the top of the declining of the 20d Raff channel to lend some further weight to this level.
Support is at the daily pivot 8802 to start with, and we also have the 30m 200ema at 8796 so we could see this hold early on, as the bulls will be looking to try and regain the momentum of Friday's bounce off 8782. Below this level though and then S1 at 8774 is next up, and also tallies with the 8771 daily support level so any test of this area is likely to see a bounce.
However, a break of that will then slide down to 8747 let fib area and 8744 daily support as well - a level that will be worth a long if seen as its also the bottom of the 10d Raff channel. Generally it remains "buy the dip" for the moment.
No major UK centric news out apart from property prices at 0930.
For the S&P500 then the bulls need to break the Hull MA resistance on the 2h chart at 6263 and as mentioned it will also be looking to close the gap at the 6230 level. We may well see it attempt that early on and then the buy the dip again from there to drive it up to that resistance level. Above the 6263 the bulls will be aiming for 6288 R2, and we also have the key fib at 6292 so again, a short at this area would be worth taking as well. Below the 6230 level then 6220 is the 30m 200ema. The bullish bias remains as both the Raff channels are still heading upwards.
The DAX40 will also be looking to defend any drops for a bull Monday, and the first support is at the daily pivot at the 23793 level. If that holds then we may well be looking at a bounce up as far as the 23975 key fib level. Initial resistance is R1 23884. Below the daily pivot then the bears may well try and drive it down to the 23664 S1 level, and we also have the key fib support at 23650 - if we were to see this area then a long here is also worth a go.
Good luck today, bit of a mixed bag but lets see if the bulls can keep control, despite the tariff "news" coming back to the fore.
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