Technical analysis for FTSE 100 for 13th February 2025
Britain’s economy expanded unexpectedly at the end of last year, official figures show, despite Rachel Reeves’s £40bn Budget tax raid.
The UK’s gross domestic product (GDP) rose by 0.1pc in the three months to December, according to the Office for National Statistics.
The figure was better than analysts’ projections for a 0.1pc contraction and leaves Britain officially out of recession, defined as two consecutive three-month periods of declining GDP.
On the news we have seen the futures price drop down to test the 8805 daily pivot level and the bulls will be keen to defend this. Focus remains on inflation and interest rates, however with the price of oil continuing to drop that will feed into lowering inflation, giving more scope to cut the interest rate again in a few months time.
Overnight the bulls nearly managed to test the 8842 resistance level and it feels like we may well see some more upside today to test that, and possibly even get up to the next key daily level at 8867. 8876 is also R2, and should we see this area then I would expect the bears to have a decent attempt at driving it down from here.
Ultimately of course, the trends remain bullish for the moment, and I am still pretty confident that the bulls are aiming for a test of the 9000 level before too long.
However, below the 8800 level today and the bears will be aiming for the 8750 level again, where we have S2, yesterdays low and also 8761 for a test of the 30m 200ema, That said, another test of the 2h coral which is at the 8791 level to start with may well play out.
Below 8750 then 8734 is S2 but I expect the bulls to maintain control today. Especially as the S&P500 is likely to want to continue the bounce from 6000.
For the bulls, then 8643 and 8667 are the main resistance levels from the daily chart, and linking in with R1 and R2 both in the same area, so I would expect bearish reactions at these levels. Above 8876 we have R3 at 8923 and the top of the 20d Raff channel here - feels a bit of a big ask for today but you never know...
Remaining on the news front is the Initial Jobless Claims at 13:30, along with the Jan PPI figure so we may well see some USA induced chop here. Things are progressing on the Ukraine front too with US/Russia having a potential meeting in Saudi, which could mark the beginning of the end of the war. Can't see Ukraine wanting to concede much, but if the money and weapon supply lines get reduced they might not have much choice.....
Anyway, let's see off we can maintain the bullish momentum today. Good luck.
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