Technical analysis for FTSE 100 for 27th January 2025
A bearish start to today with messy technical, largely being attributed to the Chinese DeepSeek AI offering as a "better" and a "cheaper" rival to ChatGPT. That news has set the cat amongst the pigeons and we have gapped down significantly on the US markets, with the S&P500 flirting with the 6000 level imminently.
However, the FTSE100 is hovering around S1 at 8440 initially, and we have the daily support at 8410 below that. I am thinking that if we see 8410 we may well see a bounce here, as the bulls will be keen to defend this drop. The US tech bros will also be keen to retrace that fall when they come online later on too.
8410 is also just above the S2 level of 8401, and the round number too, so there are a few reasons to see this area hold. Initially we may well see a small climb off the 8440 area as well. The market will be keen to try and close such a large gap as well, though a bull Monday feels like a big ask!
The FTSE100 2h chart remains bearish with the drop of the 8585 Hull MA on Friday still rolling through. The coral has now also gone red, with 8575 being the resistance level from that. Any retest of this area is likely to stall the bulls initially. Not expecting that high today, but as per Friday, if they were to break above the 8585 then the next level of note is 8640ish - not likely in the near term!
Below the 8400 level then the bears will really try and go for it and drive it down towards the 25ema on the daily at 8355, and S3 at 8328.
That said I would like to see a defence of the 8410 area today.
Slightly tricky one to call today and will be interesting to see how it plays out.... keep an eye on that 8400-8410 area really for support, 8500-8510 for resistance.
Good luck today.
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