Technical analysis for FTSE 100 for 20th January 2025
A few very strong sessions last week and here we are back at the 8500 area already in 2025. As you know, the US is closed today for Martin Luther King day, and it's also Trump's inauguration. As such we may well see a rise and dip play out again today and the FTSE100 will be keen to recapture the 8500 level having dropped back to 8485ish to start with today.
Friday's high at 8534 is the initial resistance level and then R1 at 8552. I think we may well see things stall here and then a bit of profit taking again. The 2h chart is bullish still, with the Hull MA untested and giving support at the 8460 area and then the 2h coral (green) at 8360 currently. The daily chart also remains bullish with the Raff channels still heading up so still buy the dips on the longer timeframes.
If the bears drive it below the daily pivot to start with then the 8460 level should see a reaction for that push back up towards the 8500 area, and possibly as high at 8552 where we have R1. It "may" be slightly more muted with the US closed, but it will be interesting to see the initial reaction to Trump's inauguration - there's a few executive orders pencilled in for action on day 1, some of which may well effect the markets. The knowns are more than likely priced in already though.....
Above 8550 then 8600 is next up, being the round number, and also R2 8604. Feels like a big ask for today though and with the top of the 20d Raff channel aligning with R1 I am more inclined to think that the 8550 level may cap things for today.
If the bears were to break below the 8460 level then the 8380 area looks key with the fib at 8394, the 30m 200ema at 8380 and the 2h coral at 8360 - to a few decent supports in this area so should it get there then I would like to see this hold. However I am more inclined to go with the 8460 being the main support today and a bull Monday playing out.
Likewise for the Dax40 and S&P500 with a dip and rise - I am looking at 20816 and 5982 as the key supports for today.
Good luck today.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting
Recommended Broker for trading - MT4/5, web and mobile
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership, Trading Tips, Support and Resistance Levels with Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
Keep up to date with new content, free sign up below with just your email address
