Technical analysis for FTSE 100 for 22nd April 2025
Asian stock markets fought to hold their footing on Tuesday after a furious flight from U.S. assets undermined Wall Street and the dollar, while concerns about the independence of the Federal Reserve piled fresh pressure on Treasuries.
Out of hours yesterday saw another test of 8150 to tie in with Wednesday's low last week, and the bulls have fought back a bit now, to get the price back above the 8200 level to start this shortened week off on a positive. That said it looks like we may well see an initial drop down to test the daily pivot and green 30m coral at the 8213 level to start with, and I would like to see this hold for a climb back up towards the 8300 area, possibly 8330 and R2.
The bulls will of course be keen to hang onto the 8200 level and with the rising 10d Raff channel now, we may well be on for a bit more strength to continue to play out this month. They need to break and hold above the 8300 level really though for that to materialise. Tesla results later may also be fairly telling in terms of the future direction for the US markets, and if the sell off is overdone/over reacting.
On the news front we have various PMI figures out at 0930, and US ones at 1445 so expect some chop around these times.
Below the daily pivot at 8213 then the next support level to look out for is at the 8150 level again with S1 and the key fib both here, as well as it being yesterdays out of hours low. As such, if it were to test this price then a bounce here again would make sense and is worth a long. Lower down than S2 is 8096. Not expecting that though.....
Resistance wise, then above the Hull MA at 8290 we would be looking for a rise towards the R2 level 8330 and a test also of the daily 200ema here as well. 8315 is also the daily 25ema and despite the rising 10d Raff channel, the daily moving averages remain bearish.
Initially the bulls will be looking to break above the R1 level at 8267 this morning.
For the Dax40, it's also looking like we may well get a dip and rise play out with a test of the daily pivot at 20902, and 20870 is the now green 30m coral. As such a bounce up from this level would make sense, possibly as high as the 21250 are and a test of the red 2h coral level.
The S&P500 will also be keen to build on its rise from the 5100 level yesterday and a potential test of the 5233 R1 level looks possible today. We could though see some profit taking/selling kick in there for a drop down to test the 5166 support level.
Good luck today, thinking a rise and dip pattern to play out.
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