Bulls recovering still | 8585 8609 resistance | 8520 8481 support | Fed interest rate 4.5%

Bulls recovering still | 8585 8609 resistance | 8520 8481 support | Fed interest rate 4.5%

Technical analysis for FTSE 100 for 29th January 2025

Good reactions at both the key levels yesterday with the long from 8498 and the short at 8560 both playing out well. Monday's rapid sell off in the US unwound a little bit and the bulls managed to keep the S&P500 above the 6000 level and we are looking at opening around the 6070 level on that now - the gap still exists at 6097 so I expect we will see that close and then resistance here, possibly today as we start with the "Magnificent 7" earnings today.

At 1900 we have the Fed interest rate decision with it forecasted to remain at 4.5%. The press conference at 1930 may well see a bit more volatility though.

For the FTSE100 today I am thinking that we will see this opening level at 8540 hold as we have the daily pivot and a rise back to the recent high at 8585 to set a nice double top. Above that, and possibly going to be tested later is the 8610 level where we have R2 and just above the key fib level ay 8596. So a possible overshoot of the double top, also linking in with the S&P500 closing the gap, and then a dip down from here back to the 8550 area.

Above the 8610 level then the bulls will be aiming for 8645 where we have the next major daily resistance level. The Raff channels continue to head up and we have a bullish 2h chart so the trend remains upward for the moment.

If the bears break below the 8534 daily pivot though then a dip down to 8521 200ema on the 30m and possibly 8481 below that may well play out. The 2h chart is also providing support at 8520ish as we have the Hull MA here, at 8517. The 8481 level is the key fib, and splits S1 and S2 at 8496 and 8458 respectively.

On the S&P500 I would like to see the 6044 support area hold today and a bounce from there as the bulls continue to retrace Monday's decline.

Good luck today.

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