Technical analysis for FTSE 100 for 14th January 2025
Well it was a little bit bearish yesterday and they failed to lock in a bull Monday as more and more worries weigh on the FTSE100, and also other markets. Stagflation remains a real worry across the board. Starmer has given Reeves the kiss of death by saying she has his full support and will remain in post. When the board says that about a football manager they are usually gone within a few weeks.
We nearly tested the 8180 support level yesterday, bouncing from 8186 instead and the bulls managed to get the price back above 8200 and have held overnight. That has made the 30m coral green with support at 8209 to start with. They will be keen to defend the 8200 area again as we have the 25ema on the daily still in this area.
Below that then 8190 is S1 and then 8165 key fib below that, just below that 8180 daily support level again. If we do see that then we may well get a decent double bottom bounce here so worth taking a long if it were to drop below the 8209 level. If the bears were to break below the 8165 level then the 8145 200ema on the daily and 8151 S2 are worth noting, with S3 a long way down at 8115. If we see a strong bear Tuesday play out then it's possible we get this low. Quite often in the absence of a bull Monday, we get some strength on the Tuesday though.
Resistance wise, the 2h chart is bearish with the Hull MA at 8255, and then the coral (red) at 8275. That latter level also ties in with the 8277 key fib and I would expect to see any bounces falter in this area.
Above that then the recent high and daily resistance at 8324 is next up - if the bulls were to break above this (not today I dont think!) then the 8350 level is next.
On the bullish side, both the Raff channels are now heading upwards, and the bottom of the 10d is at 8200 and just above S1.
Cable continues to fall, testing 12100 yesterday which is helping to underpin the FTSE100 bullishness. Mainly due to the fact that most constituents of the FTSE100 earn in dollars due to its international rather than UK focus. The FTSE250 is the one taking the beating at the moment.
Good luck today.
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