Technical analysis for FTSE 100 for 2nd June 2025
Another drop off 8800 on Friday, helped by Trumps 50% tariff post, but with new month money likely to flow in first thing today we may well see an initial kick up. The 2h chart is bullish to start with and has support at the 8760 level so if the bulls can defend this first thing then a rise to test 8800 and possibly higher may well play out initially.
There are a cluster of resistance indicators at the 8825 level so we could well see any rise falter here as the bears attempt to drive it back down below the 8800 level. We have R1, the key fib and the recent high on the daily all at this level so it should get a decent reaction if seen. Above this then the bulls will be trying to pull away from the 8800 level and will be aiming for the 8900 level really, though we have R2 at 8856 splitting that.
If the bears were to break below the 8760 level this morning then it could slide as low as 8691-8700 where we have daily support and S1. The Russia/Ukraine war took another notch up over the weekend with the drone attacks by both sides, which may well weigh on sentiment in the short term.
On the UK news front we have the manufacturing PMI at 0930 with a forecast of 45.1 versus 45.4 previously. Then the USA PMIs at 1445 and 1500 so we may well see a bit of volatility then. Powell is speaking at 1800 but unlikely to give anything much away.
The S&P500 is looking more bearish to start with and has 2h resistance at 5930 so if we get an initial rise to this level then a drop off from here would fit the charts well and a decline to retest the daily pivot at 5890 may well play out. A rise and dip on that to start June would be good, though the bulls will be looking to break above the R1 5935 level. Support wise, then the bottom of the 20d Raff channel is at 5825 if the bears were to break below the S1 level at 5856.
It's a similar picture for the Dax40 with a bearish 2h chart. Initial support is at the key fib 23928, and then S1 23885 below that. If the bulls were quick out the blocks then a rise towards the key fib resistance at 24300 is possible. The ball is in the bulls court to start with.
So generally thinking. rise and dip across the board today. Good luck.
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