Technical analysis for FTSE 100 for 11th December 2024
Decent Bear Tuesday played out yesterday and we have finally tested the daily 25ema support at the 8250 level. That may well start to see some swing longs fading in for the Santa Rally though we also have 8220 support slightly lower down for another entry. Either way the bulls won't want the price to break below the 8200 level this week. The big news for today is the US CPI out at 1330 so expect some volatility then. The forecasts are for some slight improvement.
There is a small 1.2 dividend today as well.
So as we look to be opening bang on the 8250 and overnight this area has held as support we may well get an initial kick up to start with. The S&P500 sell off found support at the 6035 area and hasn't moved lower overnight either so good move fully banking the short there last night. The various 2h charts are bearish still so the bulls really have a battle on their hands to get a push up for the run into Christmas.
8220 is looking like decent support - a key daily level but also S1 and the key fib for today so I would like to see any test of this hold today and then some buy the rumour sell the news kicks in ahead of the CPI figures.
Below 8220 then 8190 is S2, and 8200 is the daily (green) coral) so should in theory get a decent reaction if seen - though sentiment at that point will be suffering a bit. Could of course also say that this drop is a pre Santa rally stop hunting exercise....
On the upside, above the 8305 30m 200ema we have 8333 for the key fib, and then 8373 for R2, coinciding with the recent high. If we do start getting bullish and break above this then that 8420 area remains as daily resistance of note as well.
We are just testing the bottom of the 10d Raff channel as I write this as well, but we are below the 20d channel as you can see in the daily chart - the bulls really need 8220, or worst case 8190, to hold.
Good luck today.
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