Technical analysis for FTSE 100 for 5th December 2024
The drop off 8360 played out well yesterday while the 8320 area has held as support, even overnight. That said there is a slightly strong bearish overtone running so we could see some further declines down to the 8280 support level. This is S2 and the key fib level so if tested it should see a bounce.
Initially though we may well get a climb to the 8350 level and a test of R1, following a similar pattern to the ASX200 which rose and dipped.
Above the 8348 R1 level then the bulls would be aiming for another test of the 8388 level which is just above today's R2 level, and 8398 for R3. The daily chart does remain bullish with the Raffs still rising and the 25ema support down at 8250 now, but also rising steadily. As per earlier emails, if we were to test this 25ema line then its a decent swing long area again.
I don't expect the bulls to break above the R3 8398 level today but if they were to do so then it does put the FTSE100 on track for the 8600 year end.
Support wise, initially the 30m 200ema at 8318 is support but below this and prior to the 8280 area we have the S1 level at 8298. As that ties in with the round number of 8300 we may well see a bounce here.
At 1330 we have US initial jobless claims, forecasted to be similar to last month at 215k. Expect some volatility then. At 0930 we have the UK PMI for construction, likely to have shown a further contraction.
Below 8280 then the bears will more than likely be capable of taking it down to the 8240 level today given the slightly chaotic world that we seem to have at the moment. BTC rising above 100k will be taking all the headlines today which could bode well for the FTSE100 to quietly creep back up. The US bulls are certainly keeping the bulls busy this month with the S&P500 aiming for 6100 next.
Good luck today.
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