Technical analysis for FTSE 100 for 25th February 2025
Another hold of the 8620 level yesterday after the bears managed to break the 8650 support area so that level remains the line in the sand and we may well see another test today if they break below the daily pivot and the 8640 area to start with.
Slightly lower we also have the 8601 level for S1 and just below 8609 which is the bottom of the 20d Raff channel. Along with the round number I would expect to see the bulls try and defend any test of this today, otherwise a slide down to 8550 is highly likely. That said, should we see that level then a bounce here would fit the charts well!
Initially today I am thinking that we may well get a rise and dip play out as the bulls try and get a rise towards the 8700 area, and possibly even 8722 to test R2. That would also be a nice move above the top of the 10d Raff channel currently at 8697.
A rise and dip pattern today would also follow the ASX200 today, and the US S&P500 will be keen to try and get back above the 6000 level, having dipped below yesterday. Tariff talk between China and the US is also ratcheting up, alongside the Ukraine "peace" deal.
On the news front we have the USA consumer confidence at 15:00 so expect a bit of movement then. As we are also in the last week of the month we may well start to see a push up on indices towards the end of the week as well, if they can rise above the news headlines.
Back to the FTSE100, and 8677 is the first main resistance level with the R1 and 30m 200ema here, so watch for a reaction here. Above this then the 8722 as mentioned. I can't see it getting much higher than that, especially with a bear Tuesday back drop (though with the lack of Bull Monday we may well see more bullish action today) but if we do then 8753 is R3.
Support wise, below the 8600 level then 8585 is the key fib as well.
As the dust settles in Germany following the election the bulls will be keen to try and defend the 22280 level which is the 2h Hull MA, and then the key fib at 22193 below that. A rise towards the 22505 level today would make sense to start with for a test of the R1 and key fib resistance level. The candles yesterday has pretty long tails on the 2h chart which shows that there was decent buying appetite for the dips - that may well carry on today, at least initially.
Good luck today.
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