Hovering at 8550 with 8602 8640 resistance | 8540 8510 8480 support

Hovering at 8550 with 8602 8640 resistance | 8540 8510 8480 support

Technical analysis for FTSE 100 for 5th February 2025

Well we got the dip rise dip play out well yesterday but the bulls haven't really made a convincing defence of the 8550 level so far, as we are looking at opening at this level once again. We have the daily picot here for today as well to start with and if we see the bulls quick out the blocks (helped by the S&P500 sitting on its 2h support at the 6007 level as I am writing this) we could see an initial climb towards the 8600 level.

There are a cluster of resistance levels here though so the bears may well try and reload here, as it's the red 2h coral, R2 and key fib all in this area. 8590 is also the 2hr Hull MA which we haven't tested yet since its been bearish, so in theory we should get a reaction here.

Below the 8550 level then I am looking at the next main support being the 8511 S1 level and we also have the bottom of the rising 20d Raff channel here. The bottom of the 10d Raff channel is just below this at 8492 and as they are both still rising the longer term trend remains bullish, along with positive EMAs on the daily as well.

If the bears were to break 8510 though, we will more than likely see a test of the next daily support at the 8480 area, and we also have S2 here so I would like to see any test of this hold today. We head towards the highly likely rate cut tomorrow as well from the BoE. Talking of news we have NFP on Friday, but also ADP out today which could well give a bit of a clue ahead of that. Expect some volatility at 13:15 with that. Also some PMI news for the USA at 14:45 and 15:00 so expect some volatility then.

On the flip side if the bulls were to break above the 8600 area today then we may get as high as 8640 to test R3.... despite that currently feeling like a big ask. We could see some buy the rumour kicking in ahead of the BoE tomorrow as well. The key will be the S&P500 defending the 6000 level really -especially as they have fought so hard to recapture it this week.

With regards the S&P500 it needs to break above the red 2h coral resistance which held at 6041 yesterday, and is now at 6023 - so keep an eye on that to start with. It's also currently retesting the 25ema on the daily chart, and the daily coral is green, so the bulls do have a bit of support to start with today.

Good luck today.

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