Technical analysis for FTSE 100 for 7th February 2025
The FTSE100 managed to rise towards the 8775 level after all yesterday whereupon it turned tail and scampered down to 8700. That level is initial support now, helped by the daily pivot at the 8712 level. Initially today we may well see a rise and dip again, ahead of the NFP news at 1330. Usual caveat for NFP Friday - stay cautious! The forecast is for a drop down to 169k.. however that may be too cautious and we actually see a decent beat!
So, initial support today at 8712 but what if that breaks.... well I am looking at a drop down today towards the 8650 area as we have a cluster of decent support here. The pattern since Trump took over the presidency has seen a decent close to the week, then a big gap down on the Monday with the recovery then playing out. We may see the same again and as such loading some shorts at the end of the US session may be worth it if you fancy a risk!
8650 looks decent support as we have the S1, key fib, 30m 200ema and daily support here too at 8645. As such I would like to see any test of this level hold and an attempt by the bulls to recapture the 8700 level. 8660 is also the Hull MA on the 2h chart and would be the first test of that since it went bullish so again, I would expect the first test of this to hold and should lend weight to the bulls.
Generally the FTSE100 remains fairly upbeat and optimistic (bear in mind we are still highly likely to see 9000 this year, possibly higher... 10000!??). Flying in the face of the stagnating economy in the UK there!
Below 8645 then 8602 S2 would be the next key level I am looking at, though I dont think we will get that low today.
On the bullish side of the coin 8735 is the first level to negotiate if we are to rise as we have the red 30m coral here. A break of that then allows a rise towards 8765 R1, 8781 key fib and also a retest of 8771 yesterday's high. That sets up a double top as well and may well see some profit taking again.
Above 8771 then there is daily resistance at the 8840 level but I am not expecting it to get that high but do bear in mind - maybe an NFP figure of 300k might light the after burners though!
Stay nimble, good luck today and have a great weekend.
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