Technical analysis for FTSE 100 for 6th March 2025
Today's mission for the bulls will be to break above and hold the 8800 level, and with a forecasted rate cut again from the ECB it may well enable them to do so. That news is out at 13:15 so we may well see a buy the rumour sell the news play out as we head towards that, along with the initial jobless claims from the USA at 1330. 13:45 sees the ECB press conference as well, with traders looking for clues as to the future rate path.
The FTSE100 will be looking to defend the daily pivot level initially at the 8780 and we also have the 30m coral here, albeit red still. If they manage that then we may well see an initial rise towards the 8840 level where we have a cluster of resistance levels, namely the key fib, R1, 2h coral and another test of the 2h Hull MA.
Above the 8844 level then I am looking for a retest of the recent high at 8910, and note that we also have R2 here for today. As such a double top reaction here would make sense, though above this we still have the 8930 daily resistance level. 8920 is however the top of the 20d Raff channel.
Support wise today then the daily pivot area is first up as mentioned, but a break below the 8770 level will then likely see a slide down to the 8710 area and a test of the S1 and key fib level. This coincides with yesterday's low so should in theory then see a double bottom bounce, at least initially. A break of this and then the 8680 appears on the radar next.
Generally today I am thinking that we will see a bit of a bullish bias. The S&P500 2h chart has now gone bullish too with the 5794 level as Hull MA support and a potential rise towards the 5970 daily resistance level in the short term may well play out. The two previous daily candles both have long tails showing decent buying pressure for the moment. Initial resistance for the S&P500 is at the 5860 level with the key fib and the 200ema here, We may well see the bears have a go here.
The Dax40 will be looking for a rise towards R2 at 23577 today, but will need to break above R1 at 23373 initially. The bulls will be looking to defend any drops and the key support area is 23170-23200. Keep an eye on that holding today for a push up. The ECB decision will lead to increased(!) Dax volatility today as well.
Good luck today.
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