Technical analysis for FTSE 100 for 6th December 2024
The big event today is NFP so expect some volatility around 13:30 as that gets released. Will we see some buy the rumour sell the news playing out on the US markets as we head towards that....
The FTSE100 dropped off the 8340 level yesterday but the bulls defended the drop and overnight we have tested the 8360 resistance level once again. As such they will be keen to push above this today as that opens up a potential test of the 8400 area. However R1 and the daily resistance level are pretty close at the 8371-8375 area so it may be a big ask to push through that on the first test.
Above 8375 we will likely see a test of the 8391 R2 level and just above the recent high at 8388. Whilst the 2h chart is currently bearish, the daily chart remains firmly bullish and the year end push up is still playing out with dips being bought up, as we have seen all week. If we do drop today down to the 8300ish area then I expect that dip to be bought up as well.
Initially though I am looking for a dip down to the 8300 area as we have decent support just below the round number at 8290 with the key fib, S2 and the daily level all here. A hold of this would set up a decent bounce back to the 8360+ area. However if the bears were to break below the 8290 level then a test of the bottom of the 10d Raff at 8263 would be likely.
For the bulls, a decent break above the 8371 level would likely see 8420 above the 8400 level. Might be a bit optimistic though. That said, sentiment is generally bullish and we are in Santa Rally season! A lot today will depend on NFP news, and with 12k last month, a beat is highly likely! The forecast is 202k.
Generally then I am looking at a range between 8370 and 8290 today.
The S&P500 meanwhile has now got a bearish 2h chart and has 6090 as resistance from the Hull MA, and with the drop off the 6095 level yesterday we may well see a stutter at this level again today.
Good luck today and have a great weekend.
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