Technical analysis for FTSE 100 for 8th April 2025
The wild ride continues apace as the tariff "war" continues. Tit for tat as well as China has now blocked US films! Good timing on the S&P500 long yesterday in the live room just before that 90 day pause rumour started saw a massive move up which we were fortunately set up for.
For today, the bulls will still be looking for the "buy the dip" opportunity, and there will be one as there more often than not is. Just hop on rather than try and pick the low though. That said we have decent looking support to start with at the 7750 area as we have the key fib here, with the daily pivot just above at 7788 and then the rising (and now green) 30m coral currently around the 7700 area and rising.
If this area does hold then there is the potential for the bulls to drive it back up towards the 8000 area, and possibly a test of R1 at 8043. I am certainly expecting another volatile (potentially interesting!) day ahead. Again, stay cautious....
If the bears were to break below the 7730 area though then 7558 is S1 and likely to be hit, with a double bottom at yesterday's low at 7532 below that. Again, the bulls will be looking to defend and likely to hop on any whiff of tariff easing/stimulus/etc. That said, I can't see Trump backing down anytime soon.....
On the positive side of things for the US markets, the S&P500 2h chart has gone bullish and has Hull MA support around the 5090 area. A dip to here and then a bounce would fit well for today. A bounce to possibly as high as the 5250 area to test the 2h red coral again, and also the level it spiked to yesterday on that rumour.
Obviously it's a little harder to do much detailed technical analysis but look for breaks of key levels and then hop on, or do lower stakes at the turning points. I wouldn't be surprised if we continue to build on this bounce today though.... Do bear in mind that the backdrop (and VIX) is still in "extreme fear".
For the DAX40, the 30m chart finally has a green coral as well as a bullish 2h chart, and the bulls may well be looking to defend the 20000 level having bounced it from 19000 yesterday. Quite the range at play on the Dax at the moment!
Good luck today and stay cautious!
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