Technical analysis for FTSE 100 for 26th February 2025
Another test of the 8620 level yesterday which held well and set up the bounce towards the 8720 resistance level after the bell. That strength has remained overnight and maintains the "buy the dip" stance for the time being.
The S&P500 also defended its drop, bouncing strongly from the 5910 level and if NVIDIA results today are favourable it may well get back above 6000. However, with the recent declines the daily chart is now bearish with 6042 daily EMA resistance locked in. The Nasdaq daily chart is also bearish so it's more "short the rallies" for these two.... 21625 ema resistance on the Nasdaq daily chart.....
Back to the FTSE100 and initially we are just opening on the resistance level at 8740 which is R1 and the key fib so we may well see an opening drop form here to test the 8700 level and the green 30m coral. It was this that was tested yesterday at the 8650 level and held well so we may well see a similar reaction on this second test.
Just below this then the daily pivot and the 30m 200ema are at the 8682 level and should we test this then I would like to see this hold for a push back up and past the 8744 level. The daily chart has broken above the current 10d Raff channel which is a good sign for more upside, with the daily chart showing a potential rise towards the 8885 level where we have the top of the 20d Raff channel.
The FTSE100 2h chart now has a green coral support line at 8650 as well, linking in with the S1 and Hull MA levels as well. Outside chance of this today but if we did then expect a bounce here if it overshoots the 8680 level.
Resistance wise then the 8740 as mentioned, with 8766 R2 just above that though I have a feeling the bulls will be pushing on again today and ultimately aiming for the 8820 R3 level and a test (and possible break) of the 8800 round number.
For the S&P500 today the bulls initially need to break above the 5980 level as we have the Hull MA here, which would open up a potential test of 6011 and then the 6042 mentioned. Will need help from NVIDIA though! A break below the 5955 level though and it would be looking at testing yesterdays low at 5910 again, though we do have S1 at 5919.
Likewise the DAX40 will be looking to break above the 22635 key fib to target the 22800 level, if it can also break R1 at 22681. It will depend on the bulls defending the daily pivot at the 22466 level level if there is an initial drop down.
Good luck today.
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