Technical analysis for FTSE 100 for 9th May 2025
While all eyes were on the trade deal and the BoE interest rate cut, the FTSE100 dropped off the 8620 level by 100 points in a classic buy the rumour set the news. However the bulls fought back from there and will need to break above the 8608 2h red coral level now. There is also the R1 and the key fib resistance just above this at 8612 so we may well see the bears have an initial go here.
Generally it all looks bullish still and buying the dips is still yielding a decent haul of points. For today there is initial support at the daily pivot level at 8562 and the bulls will be keen to defend this as a break would likely lead down to the next key support 8530 for a test of the bottom of the rising 10d Raff channel. Below that then there are a cluster of key supports at the 8500 area as you can see from the table, so a long here would also be worth a go if we get that low.
If the bulls can break above 8615 though then 8632 and 8695 are the two main levels to keep an eye out for above that, with the latter likely to be fairly strong. With both the Raff channels still rising strongly, the bias remains bullish and we remain on track for a test of the 8900 before too long.
That said, the 2h chart is bearish for today so that 8610 area with both the red coral and Hull MA here will be key to start with today. We have BoE Governor Bailey speaking at 0940 today and following the rate cut we could see him talking up the game.
It looks to be a similar picture for the Dax40 and S&P500, with the potential for a bullish day and a test of the 23530 and 5717 resistance levels respectively. We may well see the bears have a go here on both of these levels, and some profit taking ahead of the weekend later on today as well. Daily pivots at 23350 and 5669 are the initial supports but it would be good to see the bulls step up today.
More trade deals are now likely as well as the trade war eases, and countries keen to get things cemented.
Not too much more to say really so good luck today and have a great weekend.
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