Technical analysis for FTSE 100 for 20th March 2025
The 8700 continues to hold and we are still in buy the dip territory but the bulls need to break above the 8740 level to enable a move higher - towards that 8786 resistance level that we have in play on the daily chart. The key for this morning will be the 8690 support area holding if tested as we have the first test of the green 2h coral here.
The 10d Raff channel is now also heading upwards on the daily chart, and the US bounce from 5500 on the S&P500 is playing out well, reversing the early March declines.
That said we have the BoE today, with interest rates likely to remain at 4.5%, and option expiry tomorrow. Today we have had some unemployment news out first thing as well. It remained unchanged in January, and wage growth also held steady, providing the BoE with the potential to resume its rate-easing path later in the months to come.
So, first support for today is the 8680-8690 mentioned as we have the S1 and 30m 200ema here, along with the 2h coral. The daily 25ema has also locked in bullishness with support on that at 8671 lending support to a potential bounce at this area.
However, if the bears were to break 8670 then we may well see the 8640 area where we have S2 and just below the key fib at 8652. Generally speaking today I am still in buy the dips mode, so any supports that are tested are worth longing. See the table above for the various key supports.
Assuming we do see some upside today then I am looking for a rise towards the 8775 R2 level and also a possible test of the daily resistance at 8786. Also of interest to the bulls will be a test of the 8800 round number, and we have R3 just above that at 8813. Might be a big ask for today though.
Initially we do need to break that Hull MA at 8740 though for any decent upside.
The Dax40 is also testing its green 2h coral at 23250 as I write this so again the bulls will be looking to build on this. Both dips yesterday were defended - 23200 itnially and then 23170. 23472 is the Hull MA resistance on the 2h so the bulls will be looking to rise to there, and possibly break through. Both the Raff channels are heading upwards as well. Any dip down to the 23180 area is worth buying today.
For the S&P500 it's the same story - buy the dip. The 2h chart is bullish with support at the 5660 level, and then 5620 below that. 5670 is also the daily pivot to lend support to this area. A rise towards the daily 25ema resistance at 5788 for today may well play out, and we also have R2 here at 5784. We are just breaking above the 20d Raff as I write this at 5690, and then the top of the 10d Raff is at 5772.
Generally all looking to continue the bullish theme into today as well having had the flush out early March.
Good luck today.
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