Technical analysis for FTSE 100 for 28th January 2025
A fairly decent recovery for the FTSE100 from the 8440 initial support yesterday, helped by minimal tech exposure. The US also fought back as expected (they never like opening to a big move down) and the S&P500 managed to get back above 6000. They will be looking to consolidate today and a push to close the gap left from Friday at the 6100 area is likely, As we didn't have a bull Monday, we probably won't have a bear Tuesday and we may well see some more upside today, as more DeepSeek repercussions get digested.
For the FTSE100 we have initial support at the 8500 area with the daily pivot and the green 30m coral here. The 2h chart has also gone bullish overnight but still looks weak. The 2h coral is at 8548 and now red so initial resistance is here, with the R1 just above this at 8567. We also have the key fib at 8559.
If the bulls are quick out the blocks and want to defend the 8500 area then we may well see a rise towards this 8550 and possibly 8570 area this morning.
With cable hitting resistance at 12450-12500 it will be helping the FTSE100 as well if that drops back a bit too.
Initial support at the daily pivot is also helped by the green 30m min coral at 8497. I would like to see this level hold really to at least make an attempt at a rise towards the 8550 area. if this were to break though then yesterdays low at 8440 and the key fib at 8444 would probably be tested, with the daily support at 8410 below that.
if we were to see the 8410 level then a long here is worth a go.
The recent high is 8585 from Friday and while this feels a big ask for today any break of this keeps alive a possible test of the 8640 area. I don't expect that today though!
The market will also be keen to end January on a more positive note as January often sets the tone for the year ahead - a bearish January wouldn't bode well, despite the expectations that we may well see 9000 on the FTSE100 this year (I think we will).
So feeling a bit optimistic for today and a possible rise up to 8550, and maybe even the 8570 area....
Good luck today
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