Technical analysis for FTSE 100 for 20th December 2024
The bears are still holding the upper hand for the moment and 8050 looks to be key support for today as we have S2 and the bottom of the 20d Raff here. As such a long here his worth a go.
Initially the bulls will be looking to move the price above the 8100 round number as that would lead to a test of the 8137 level where we have R1 and the 200ema on the daily chart. This level therefore will be fairly key resistance and a break of this would then likely see a rise towards the R2 and daily level at 8161-8168.
We have retail sales out this morning, which have just come out below forecast at 0.2%, though an improvement on the previous month of -0.7%. Later today, at 1330, we have the USA inflation figures with a rise to 2.9% forecasted, versus 2.8% previously. As the Fed cut rates yesterday they will be hoping that it does come in as forecast!
Back to the levels and we could well see an end off week push from the bulls to try and generate some festive cheer and reverse the recent declines. Above the 8170 feels a big ask but if they were to manage that then 8224 is the 25ema on the daily chart and now key resistance as the MAs have crossed back to a bearish state. That level is also the top of the 10d Raff channel. However I don't expect it to get that high today.
Monday will likely see a drift higher on low volume, and Tuesday is a half day, which again may well see a low volume drift higher so bear that in mind for early next week. The bulls will be aiming to close out the year above the 8100 level - though I don't think the potential 8600 year end is likely now given the past week of data, politics and central bank news!
If the bears were to go for it today and we break below the 8050 level then 8029 is S3, but 8015 is daily support and more likely to be tested. If it we see that level then a tentative long here could be worth a go.
Being the end of the week and most traders last day we may well see some chop so stay nimble.
On that note, I wish you a very Merry Christmas and a Happy New Year, enjoy the break and here's to a great 2025!!!
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