Technical analysis for FTSE 100 for 16th May 2025
And so the week draws to a close with the bulls managing to finally get a decent move away from the 8600 level. Initially today there is resistance at the 6860 level so we could well see some bearish action here for a move down to the new higher supports before a bounce ahead of the weekend.
Above the 8660 level I am looking at 8700 being the round number and then R2 and the top of the 10d Raff channel at 8728. If we were to get this latter level then a short here is also worth taking.
The 10d Raff channel has levelled off after this week's less than volatile sessions, however, the 2h chart remains bullish and has decent support from the Hull MA at 8600, along with the green coral at 8590. As such should we see a dip down to here then I would like to see a bounce materialise, especially as its the round number and I have a feeling that the bulls will want to defend the 8600 now.
If the bears were to break below the 8600 level then ultimately I am looking for a test of the 25ema on the daily, now sitting at 8511. However, prior to the we have S1 at 8569 for today so keep an eye on this level for a reaction if it gets tested. S2 is down at 8493.
There isn't any major news out today so we will likely see a fairly steady day (famous last words) and a rise and dip play out, with some profit taking at the end of the day. Traders might be loathe to hold too much exposure over the weekend just in case "something" gets tweeted!
The Dax40 is also bullish to start with and has 23625 as 2h support that looks good for a hold should it get tested. Initial resistance is at the key fib at 23776, with the 23800 round number above that. Again, a dip and rise would be good for today, and a slight overshoot of the 2h support to test the daily pivot at 23595 could play out. Both the daily Raff channels continue to rise keeping the bulls in charge for the moment.
The S&P500 also continues its rally, with its sights set on 6000 again. However the 2h chart is bearish for this to start with and 5950 is Hull MA resistance, so we could see any early rise falter here for a drop back to the 5900 support area with the daily pivot and the green 30m coral both here. Being the round number the bulls may well want to defend this as well.
So generally I am thinking a dip rise dip to play out today. Good luck today and have a great weekend.
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