Technical analysis for FTSE 100 for 13th March 2025
A bit of relief for the bulls yesterday with the 8500 level holding, and a bit of a bounce again after the US CPI news followed the buy the rumour sell the news pattern. Main news today is US Initial Jobless Claims and PPI at 12:30 so expect a bit of volatility then.
For the FTSE100 today I am thinking that we will see an initial climb towards the 5550 daily pivot area before dropping back to test the 8500 level again. This is now the Hull MA 2h support level so the bulls will be keen to defend this again today and use it as a springboard for a push higher. Sentiment remains negative though along with the gauge on "extreme fear". However, a possible peace deal with Russia remains in the wings which may well help the bulls.
The chancellors attack on cash ISAs has also been delayed though on the flip side it will get more people into S&S ISAs - and for the risk averse buying a high yielding share such as Aviva at nearly 7% will be a suitable alternative. That change may well give the markets a summer boost....
Initial resistance is at the daily pivot as mentioned, and a break above this will see the bulls aiming for the 8585 area where we have R1 and the 30m 200ema. Crack this though and then 8602 key fib, and also a possible rise towards the 25ema on the daily in the next few sessions at 8650 could play out. Do note however that the 2h coral is still red and has resistance at 8555 so this level is going to be tough to break initially.
On the support side of things then the 8500 level is key to start with as mentioned - yesterday's low and also the Hull MA, as well as being the round number. Below this though and ultimately the bears will be aiming for 8400 where we could see a decent bounce. However there are a few other decent looking supports prior to that for today, 8489 for the key fib and then 8471 for S2.
A lot will depend on the US once again and if the sustained selling there continues - 100 point range on the S&P once again yesterday keeping the volatility alive!
The Dax40 will be keen to defend any drop down to the 22500 level today and with the Hull MA, key fib and S1 all in this area it would be good to see a bounce here - to try and target the daily pivot and possibly as high as 22700. Of all the markets I watch the Dax40 daily chart is looking the most positive!
Good luck today.
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