Technical analysis for FTSE 100 for 7th May 2025
The bulls defended the 8570 level well yesterday however the price remains below the round number of 8600 for the moment, and ahead of the Fed today and the highly likely rate cut from the BoE tomorrow. If the plan plays out then we will see a 0.25% rate cut tomorrow and then the next one in September, and aiming for 4% interest rate by the end of the year.
Initially today we have support at the 8540 level as we have the key fib and the S1 level here, and we may well see a dip rise dip play out today. The 2h chart has gone bearish after yesterday's bear Tuesday and has resistance at 8640. That would set up a decent 100 point range to play today if that latter level holds as resistance too.
Back to supports, and prior to that 8540 area we have the 30m 200ema at 8568 though it's not the strongest, which is why I am preferring the 8540 area - we also have the bottom of the 10d Raff here as well. A bounce here would fit the charts well.
If the bears were to break 8540 though then 8472 is S2 and we may well also be on for a test of the 25ema on the bullish daily chart at 8450 - not expecting that today but should it get tested then a long here is worth taking.
Initial resistance is at the daily pivot at the 8611 level and then the 8640 Hull MA above that. 8674 is R1 should the bulls manage to push on, though a lot of todays action will be driven by the Fed later. Thats not till 7pm though so we will see some after hours volatility I expect. It does still remain buy the dips on the longer times frames and a push up towards the end of May before the seasonal selling kicks on would play out well. Still thinking that we will get a test of 8900 this month.
That said I can't see the price getting above the 8675 level today but if it did then R2 and the top of the 10d Raff channel is at 8750 - seems a big ask for today.
Good luck today and let's see if we get the dip and rise play out initially.
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