Technical analysis for FTSE 100 for 8th January 2025
The bulls hung in there yesterday with a defence of the 8200 level, and despite the US being very bearish, managed to get a rise towards the 8250 area. That 8250-8260 area has capped all the recent rises so remains the level for the bulls to beat and if that happens today then we should see a rise towards the 8300 area.
8297 is R2 and its also just above the 8285 key fib, and those holding longs from 8100 over the holidays will likely look to bank here. As such we could see a drop off from this level before a bounce back. The 10d Raff channel is now looking a lot more positive and heading up well so as has been the case all week, buying the dips is good. For the FTSE100 anyway!
We have USA news at 1315 & 1330 with ADP and Initial Jobless Claims so may well see a bit of volatility around these times, and they may well help the US bulls reverse yesterday's slide.
Initial support for the FTSE100 is at the daily pivot level at the 8225, and then 8214 30m 200ema below that. As such, if we get an initial drop down to this area then a bounce here would be good for a charge at the 8260 and hopefully a break higher through that.
However, should the bears take the momentum then the next key support lower down is at 8200/8195 with 8175 key fib below that.
The daily EMAs are on the cusp of crossing to a bullish set up and that would lock in the 8200 as support if the bulls can keep the price up today. We may yet see some more strength pan out this month! I dont think we will get lower than the 8200 level today though, as the ASX200 was pretty bullish and with the FTSE100 holding on well yesterday in the face of the US drops it should maintain the bullishness today. I wouldn't be surprised to see the S&P500 retrace yesterday's drop either.
Above the 8300 level then ultimately we have the 8337 R3 level to look at, and with the top of both the Raff channels also in this area it would make a good target for the bulls.
So, expecting some more strength today and buy the dips remains the play. Support 8225, 8200; resistance 8260, 8300 and 8330.
Good luck today.
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