Technical analysis for FTSE 100 for 22nd October 2024
A lacklustre bull Monday saw the FTSE top out at the 8390 area again before plunging below the 8300 first thing today. That has set up a potential bear Tuesday pretty well so shorting the rallies is the preferred play today. Initially we may well get a kick up to the 8330 area where we have the 30m coral and the 200ema. If the bears appear here then there is the potential for a move down to the 8250 support area.
8250 is likely to be defended by the bulls though, and a bounce here back towards the 8300 level would fit very well.
Initial support though is from the key fib at the 8286 level, helped also by the 25ema on the daily at 8294. Hence why I am thinking that we could see an initial move up from this area.
If the bears were to break 8250 today though then the 8220 level is next up with S3 and the bottom of the 20d Raff channel here. Both the Raff channels are still heading up as well and we are just on the bottom of the 10d one at 8298 as I am writing this.
For the bulls, a break above the 8330 level will likely see a decent climb to the 8377 R1 level with another test at 8395 above that. 8397 is also the key fib for today. Ultimately the 8420 level is still showing as resistance and 8424 is R2. That said, I think that the bulls may well struggle a bit today. We also have the BoE governor, Bailey, speaking at 14:25.
The 2h S&P500 chart has also gone bearish for the moment with the 5860 level as resistance so keep a close eye on this level if we get any rallies up to it - worth trying a short.
Good luck today.
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