Technical analysis for FTSE 100 for 4th June 2025
A great rise on the S&P500 yesterday from the 5900 level which looks set to continue across the board today and the FTSE100 may well have its retest of the 8820 area today. 8821 is R1 and mirrors the recent high, though ultimately we may well see a rise further and a test of the 8852 R2 and possibly even 8900 where we have the next daily level of note.
Initial support is at the 8780 level where we have the daily pivot and the 30m 200ema, and also a green 2h coral support line. If the bulls can defend any test of this then we should see more bullishness continue over the course of today's session, probably helped by UK data out at 0930 with composite and services PMI, both forecasted to have increased.
Talking of news, at 13:15 we also have the USA ADP out also forecasted to show an increase with 111k forecasted. That may well give a clue for NFP on Friday as well.
If the bears were to break below the 8780 today though, then we will likely see a drop down to test the 8740 level again and a double bottom with yesterday and then 8713 being the bottom of the still rising 20d Raff channel. Raff channels are all still rising across the board so buying the dips still remains the play for the time being.
The bulls will be keen to break 8800 convincingly and ideally the 8820 area today. They may well get a decent tailwind from the USA again, and yesterdays rise, along with Asia pushing up a bit today, may well help. As you can tell, I am expecting more upside today and a rise towards 8900 in the near term would fit the charts well.
It's a similar picture for the S&P500 with it looking like it may well build on the rise yesterday. The 6000 level once again remains the main hurdle with it being the round number and also 6004 for R1. I'd like to see 5952 hold on any test as we have the daily pivot here, and it would work well as a bounce point. Above the 6004 level then 6033 is R2 and the next major resistance. With a few bits of US news out today then we may well see the bulls push this up if the news comes out favourably.
The Dax40 is similar but we have initial resistance at the key fib at 24225 to start with. The bulls will need to break this to target the R1 24275, and possibly as high as R2 24396. Support is once again at the daily pivot and 30m 200ema at 24045 so if this holds then we should see some continued upside. A break of the pivot then the next support to watch for is 23897.
Good luck today.
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