Technical analysis for FTSE 100 for 6th February 2025
The FTSE100 has finally managed to pull away from the 8550 level and the bulls put in a decent shift yesterday breaking above the 8600 level. Likewise the S&P500 pulling away well from the 6000 level. Bodes well for some more upside today as we have the BoE expected to cut rates at midday, with US jobless claims at 1330. Also NFP tomorrow don't forget!
For today I am thinking that generally we will see some continued bullishness, and an initial rise to the 8715 area where we have the next daily resistance level in play. That is also just above the R1 level at 8705 and the bears will certainly be trying to defend the round number at 8700.
The 2h chart is firmly bullish once again, and has a green coral for support at 8590 and the Hull MA here as well. We probably won't get that low today but it keeps the momentum in the bulls court.
Above the 8717 level then the next key level I am looking at is 8775 - might be a big ask to get that high today though as we also have R2 and the top of the 10d Raff channel at the 8749 level. Worth a tentative short here in case it doesn't push past.
Having mentioned the 8590 support, we do have some higher up, primarily around the 8650 area where we have the 30m coral line, and just below the 25ema on the 30m. As such, if we do see a drop back from here from the 8717 area then this area may well hold as support.
It's also worth noting that the 8692 level is also a double top with the high from Friday last week prior to the sell off and gap down on Monday so as such, we may well see some longs banking here and an associated drop from here instead. With R1 also at 8705 then we are coming into some decent resistance to start with.
If the bears were to break 8650 then 8620 is the next likely level where we have the daily pivot and also splitting the 30m coral (8642) and the 30m 200ema (8600), so we should see some reaction here.
The S&P500 will be keen to continue the rise from 6000 and target the 6117 recent high, then 6130 above that. That said, 6090 is R1 and just above the key fib at 6086, so the bears may well try an assault slightly below the more obvious DT level. Ahead of NFP tomorrow I would expect to see that buy the rumour sell the dip continue to play out as per yesterday.
Good luck today.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting
Recommended Broker for trading - MT4/5, web and mobile
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership, Trading Tips, Support and Resistance Levels with Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
Keep up to date with new content, free sign up below with just your email address
