Technical analysis for FTSE 100 for 2nd December 2024
The FTSE 100 ended flat on Friday amid low trading volumes, as gains in mining shares countered weakness in defence stocks, while the stock index logged its first monthly gain in three.
Well off we go, another new month and the last one of 2024 already! Will we see a rise and dip today as the new month money comes in, despite a weaker backdrop with business confidence and retails sales falling....
Initial support is at the daily pivot and green 30m coral at the 8277 level, and following Friday nice bounce off the 8260 level the bulls will be keen to start the week on the front foot. Lots of expectation for a generally bullish month to end the year - Santa Rally and a possible rise to 8600 on the cards. The bulls need to break 8388 really though if we are to see that anytime soon.
So, expecting the bulls to be quick out the blocks, but they need to break the 8305 level which is daily resistance, along with the 8301 R1 level and the red 2h coral. If they manage to do that then the next level of note is still fairly close at 8331 with the key fib here, and 8347 for R3. Above that then the 8388 as mentioned. That could cap the rise for today though as we may well follow the ASX200 and get a rise and then some bearishness kicking in.
If the bears were to break below the daily pivot and the 30m 200ema at 8270 then we will likely see Friday's low at 8253, and then the 8239 level below that. I would like to see this 8239/8231 S1 level hold though as that will then keep the bulls in the game.
A break of 8231 and then we will likely finally test the bullish 25ema on the daily at 8209 now, and with other daily support at 8204 this area should hold. It may well be the level that tees up the Santa Rally so looks very key!
It all hinges on the bulls breaking the 8300 area really today, and if they manage to do that then we may well see the 2h chart turn bullish.
Good luck!
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