Technical analysis for FTSE 100 for 31st January 2025
Well that was even more bullish yesterday than expected with the bulls managing to power their way to the 8680 level in a steadily trending up day. Initially today we need to break 8665 which will likely see the bulls make an attempt at the 8699 key fib level, and possibly 8717 where we have the top of the 10d Raff channel. We may well see a stutter here and a dip back down.
Above 8720 and they will be aiming for the R2 level at 8777 which feels like a big ask but you never know - it is Friday after all! 13:30 this afternoon sees the US PCE data out which may well be a catalyst for a push higher as well. Even the Trump 25% tariffs on Mexico and Canada had minimal effect yesterday with the S&P500 initially dipping but swiftly retracing.
For the bears, they will be looking to retrace some of yesterdays rise and the first main support is 8632 where w have the daily pivot, and then 8600 below that with another possible test of the 2h Hull MA. Slightly lower then I am looking at the 8579 level with the key fib and 200ema here, and then the 8560 daily support below that. I dont think we will get that low unless the PCE data is poor.
I mentioned in yesterday's email that it generally all looks bullish and I feel that is also the case today. The bulls are certainly in the driving seat still and a break above the 8720 level will certainly bode well for a strong year ahead. You will also remember me mentioning that January can also set the tone for the rest of the year so if we have a strong month end today then expect 2025 to generally be more optimistic. The bulls will certainly be aiming for a strong monthly close.
Not too much more to say so look for a rise towards the 8720 area and then some profit taking there. Remember to be a bit more cautious today as it's Friday.
Good luck today and have a great weekend.
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