Technical analysis for FTSE 100 for 18th August 2025
Following the 100 point drop off from 9230 on Friday to test the daily support level at 9138, the bulls have tried to fight back a bit since, and we are looking at opening around the daily pivot level at 9167. Initially we also have a bearish 2h chart with 9185 as resistance. I am thinking the we may well see a dip down initially to retest that daly support level before a bull Monday climb that could potentially get as high as the 9226 key fib level.
If the bulls were able to break above this then the next key level on route to the 9300 level is 9268 where we have R2 - possible today but also quite a bullish proposition and would need a decent news driven tailwind - not impossible though!
Support wise then initially a retest of the 9130 area may well play out, and the bulls will be keen to defend this as a break of that will likely see a drop down to the 9097 level which is the lower daily support, and aligns with the round number. As such, a defence of this is likely if it were to get that low today.
The daily Raff channels are both heading up again now following the decently bullish week last week and the bottom of the 10d Raff channel is at the 9100 level as well. If some sort of truce/peace deal can actually materialise in the Ukraine war then we may well see some market optimism off the back of that as well, and more upside this month. The bulls would certainly like to see 9300!
The bottom of the 20d Raff channel is near the S2 level (9065) at 9072 so we also have decent support here if the bears were to break those higher ones. Generally we still remain in buy the dip mode for the time being as the low volume summer trading plays out.
Its a similar picture for the S&P500 with a potential dip and rise to play out and the support level at 6443 to start with where we have the 30m 200ema, and just above the 6429 S1 and also the bottom of the 10d Raff channel. Ultimately a rise towards the 6500 resistance level to test the key fib and the R2 may well be the order of the day. Above that then R3 at 6522.... but we have a bearish 2h chart and Hull MA resistance at 6489 to start with.
The DAX40 may well see a test of the key fib and the R1 area at 24500 so look for a short here, but there is also the potential (if a bull Monday kicks in) for a rise to test the R2 level at 24621. Initial support is at the 24300 area where we have the 30m 200ema, and just above the S1 level 24282.
Good luck today.
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