Technical analysis for FTSE 100 for 21st January 2025
And off we go, the Trump presidency is back and already so is the volatility! The FTSE100 was frustrating yesterday just missing both the long and short orders, but it looks like we may well see a bear Tuesday today as the 2h chart has gone bearish overnight and has 8550/8555 as resistance to start with. That's is also around yesterday's high level so would be a decent double top as well and therefore likely to see a reaction. Also note that R1 is 8556....
If the bulls were to break above this then 8580 is the key fib, then the 8600 round number. The daily Raff channels continue to head up so its still looking bullish when you zoom out, however we may well see a bit of bear Tuesday play out today as markets catch their breath. Also of course we have the US markets reopening after their closure yesterday.
If we were to break above the 8600 level then 8624 is R3 though that may be a big ask today.
For the bears then initial support is at the daily pivot at the 8520 level and after the overnight dip down to the 8488 level we have climbed back here. This overnight low would be initial support again, though if the bears break 8488 then the 8460 level looks like a decent level to try a long from. We have the green 2h coral here and it's also just below the key fib at 8467, and we have S2 at 8452.
I would like to see this area hold though, as a break below 8450 would then bring S3 at 8422 into play, with potentially a bigger slide to close out January. The daily coral is also now green and down at 8208 so whilst not relevant for today it's worth bearing that area in mind for longer term support.
Most of the moves today are going to be driven by news emanating from the USA and Trumps first full day and what other executive orders are released, especially around tariffs which are likely to have the largest effect on markets outside the USA.
So thinking a rise and dip and looking at the 8555 area as the main resistance of note, with support at 8490 and 8452.
Good luck today.
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