Technical analysis for FTSE 100 for 21st May 2025
We got the rise and dip play out yesterday and this morning we are straight into things with the CPI figures at 7am. That has just come in slightly above expectations at 3.5% for the year. However the FTSE100 is on its support at the 8766 level at the same time so again we may well see a rise and dip. The bulls will be keen to try and push past the 8800 level which keeps alive the hopes (plan!) for a test of the 8900 level in May.
The 2h chart is also bullish to start with today, and has Hull MA support at 8757 to lend weight to the daily pivot as support. Let's see if we get a rise and dip play out again. If we do defend the pivot initially then a rise to test the 8818 R1 level looks likely, with the key fib at 8829 above that. Higher still, and if we get a tailwind from the USA then ultimately a test of the 8851 level would be good today, and that is also just below the 210d Raff channel top.
Support wise, if the daily pivot does break then we will likely slide down towards the 8700 level where we have the green 2h coral line and also the 200ema on the 30m. Thats just below the key fib support for today as well at 8712. That would be quite bearish though if we do break the pivot, given the bulls have managed to test the 8800 level last night.
That said, there is also S1 at 8733 in between those levels. With the Raff channels both still heading upwards then the bias is still bullish with buy the dips the longer term play for the time being.
The S&P500 has weakened slightly though with a bearish 2h chart now following the drop from 5972 on Monday, and has Hull MA resistance at 5963 to start with today. Again, the rise and dip played out on that yesterday, but the bulls will be keen to defend the S1 and round number at 5900 today. If we do get a bounce from that it may well help the FTSE100 rise through 8800.
Oil has also ticked up in price which helps the FTSE100 (Shell & BP), along with GBP/USD now at 13450.
The DAX40 will also be keen to defend the daily pivot to start with, along with the 24000 round number and the bulls will be looking for a rise towards the 24062 30m coral initially, with a test of the 24150 key fib above that. If they manage to get that high then we could see a drop from here though back down to the pivot. There's a slight bit of caution pervading at the moment, just in case geopolitical tensions ramp up again.
Good luck today.
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