Technical analysis for FTSE 100 for 4th March 2025
Nice rise and dip yesterday as the bulls started the month on the front foot, however they failed to hold 8900 and stalled just shy of the 8930 resistance level after all that. A slump down to the 8800 support level played out and we bounced there to cement that as short term support. I am thinking that we may well see similar today with a rise and dip as a bit of bear Tuesday plays out later.
Initially the bulls will be looking to build on the 8800 bounce, and we have key support just below this at the 8780 area with S1, 200ema and the key fib here so if we see that this morning I would like to see a bounce here.
The 2h chart is bearish to start with and has the 8842 as Hull MA resistance, and then 8866 30m coral above that. We may well see any bounce stall here today. Should the bulls break above 8866 then a retest of 8901 is likely and R1 is here, with the top of both the Raff channels just above this at 5920 and a double top with yesterday also.
I can't see it getting much above that though today. Trump has also halted all US military support for Ukraine as well today which may well unsettle European markets.
If the bears were able to break below the 8780 level then a slide down to S3 ultimately, at 8665 may well be on the cards. There isn't much in the way of key market moving news today either so a bear Tuesday may well play out.
The Dax40 will be looking to consolidate its gains from yesterday though again, some profit taking and subsequent dip is likely. The 2h Hull MA support is at 22800 so look for another test of this line to hold, 22811 is also the key fib so the bulls will certainly be looking to defend this area.
The S&P500 2h chart is also bearish with 5877 as initial resistance and then the 5925 area above that with a cluster of resistance levels in this area. As such, should we see 5925ish then a short here is worth taking.
Good luck today.
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