Technical analysis for FTSE 100 for 28th August 2025
The bears drove it down from 9300 yesterday and that remains the line in the sand for the time being. The 2h chart is also bearish as you would expect with the Hull MA resistance in play early on at 9280 and the red coral at 9315. An early rally to this first level may well see a bearish reaction as we also have R1 here.
We may well get an initial kick up as we are just looking to open at the bottom of the 10d Raff channel, and are also on the daily pivot as support at 9260. The 30m EMA are also bullish to start with. An initial rise to shake off the dip following the NVIDIA results would make sense and another test of the 9300 level. Above 9300 then the bulls will be aiming ultimately for the recent high at 9357. That feels like it might be a big ask for today though, so I am more inclined to go with the stutter at the 2h resistance levels just shy of 9300. R2 is 9335 so also keep an eye on this for a reaction.
No really market moving UK news but we do have US GDP for Q2 at 1330, forecasted at 3% and also the Initial Jobless Claims then as well, forecasted to have dipped slightly to 231k.
For the bears they will be looking to break the 9280 as that would open up the potential for a slide down to the 9215 area where we have S1 and also just above the bottom of the 20d Raff channel support at 9206. As such, should we see this area then a long here is worth taking for a run back up towards the pivot. The S&P500 has bounced well from yesterdays low at 6445 and the bulls will be keen to shake off that tech driven wobble - which should see some bullish sentiment roll through in the UK markets.
Generally it still looks bullish on the longer time frames and buying the dip is still the best play as mentioned earlier this week - that was certainly the case on the S&P500 yesterday.
For the Dax40 I am looking at a range between 23900 and 24231 - these are the upper and lower fib levels and again buying any dip on this one looks the play as well. The bulls will be keen to defend the round number, and we are just on the daily pivot as resistance to start with at 24082. If the bulls can break this then it should manage to test the 24180 where we have R1 and the 30m 200ema, then the fib as mentioned above that at 24231. If we break below the S1/key fib at the 23905 level then look for a test of S2 where we also have the bottom of the 10d Raff channel at 23807.
As per the above, the S&P may well try and continue its bounce and an initial rise towards the R1 level at 6487 looks possible. If the bears do reappear then a drop down to the 6450 level again, where we have the 30m 200ema level as support and just above S1 at 6442. A long around this area, as well as a short at the R1 look to both be worth a try.
Good luck today.
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