Technical analysis for FTSE 100 for 22nd May 2025
Well the S&P500 certainly dropped off the 5937 resistance yesterday and we may well see any rise today sold again. That may well be the case for the FTSE100 as well, with the 8802 key fib level looking like strong resistance, along with the 8792 Hull MA level on the 2h chart. The 30m chart is more bearish to start with as well, and has the daily pivot at the 8748 level and coral line both here as the first hurdle that the bulls would need to jump.
Initially therefore we may well see a dip down to the 8720 200ema level and the bulls would certainly be looking to defend any drops, especially while the 2h coral is green, and the daily Raff channels are continuing to head up. It still feels like they would like to break 8800 though to test that 8900 level!
Below the 8720 level then the 8698 S1 is next and links in with the round number, and then 8686 key fib just below that. S2 is at 8665 though I don't think it will get that low and they bulls will be looking to defend the 8700-8720 area.
We have a cluster of PMI data out at 0930 with the forecasts all pencilling in a slight beat of the previous levels. That's followed at 1330 by USA initial jobless claims, with forecasts matching last months level at 230k.
If the bulls were able to break above the the 8800 level today then 8831 is R2, with a rather optimistic 8864 for R3. I don't expect it to test that though!
The DAX40 may well have another dip and rise play out, and we have the daily pivot as initial resistance at 23985. If that holds then we could see another leg down to test the 23810 level where we have S1 and the key fib, and as such likely to be defended strongly by the bulls. The drop off 24150 yesterday played out well and as you have seen from the update I banked the rest of the runner this morning, just in case the bulls are quick out the blocks. Above the daily pivot then a rise to 24133 may well play out to test the key fib here. That would also be a slightly lower high if it were to hold as resistance so could then pave the way for a drop off again.
The S&P500 is weak but the bulls will be keen to defend the bottom of the Raff channels at the current 5850 area. As such a rise and dip could play out on this also, and I am looking at the 5900 area as resistance today.
Good luck today.
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