Technical analysis for FTSE 100 for 18th February 2025
The USA returns from their day off yesterday and the big event is the start of the peace talks in Saudi over Ukraine. We may see some volatility as that plays out. We also have a 20 point dividend this week for the FTSE100 which will also be helping the bulls, more so tomorrow as its applied on Wednesday. We have seen the 8700 level defended and a fairly decent bull Monday yesterday as they took it up to the 8780 area. That has made the 2h chart bullish, with the red coral at 8775 now to break. Support from the Hull MA for today is now at 8754.
As such we may well see a rise and dip today today as well, but possibly (hopefully?!) with a bigger dip than yesterday. It's all generally looking quite positive and we may well see a rise today to test the 8820 area where we have the key fib and the key daily level to act as resistance.
The bulls will also need to jump 8800 first being the round number and also R1, but I imagine they will as they have the momentum at the moment.
Even more optimistically, but I don't expect this as we will have the "bear Tuesday" backdrop, above 8820 then 8867 is the next main level to keep an eye on.
Initial support as mentioned is the 8754, and in addition to the Hull MA, we also have the daily pivot and 30m 200ema here, as well as being just below the 30m green coral. I would like to see this hold, at least this morning really. If it were to break then a drop down to 8698 key fib may well play out, if S1 at 8723 breaks.
Lower down the daily support level is 8680 and with S2 also at 8675 a bounce here would make sense. However, if there is some progress in Saudi then we may well see the bulls latch onto that. Certainly the European futures have been optimistic so far, and the S&P500 has been climbing overnight.
At 0930 this morning we have BoE Bailey speaking, and with a possible mention of interest rates once again. However, I still don't expect any changes on that front till at least the end of Spring.
So, a bit of a coiled spring to start with - 8780 or 8750 need to break to set the direction for today, though a rise and dip would fit well.
Good luck today.
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