Technical analysis for FTSE 100 for 23rd May 2025
Just a reminder that it is a holiday in the UK on Monday so no email that day.
The bulls continue to be foiled at their attempts to break 8800 though they defended the 8700 level well yesterday and we are looking at decent support at the 8740 area to start with today. We have a cluster of levels here, namely the daily pivot, 30m green coral and the 30m 200ema. As such I would like to see this hold initially for a rise and dip to play out today.
Resistance isn't that far away though at 8783 with R1 here, and also the 2h Hull MA at 8787 so we could see any early rise falter here, and then a drop back down.
If the bears were to break the initial support at the 8735 area then we will likely see a retest of yesterday's low at 8688 and that is also just above the 8681 key fib support level for today. As mentioned in earlier emails I still think that the bulls will be keen to test 8900 this month before the "sell in May" kicks in. The key to that though is to break 8800!
Above the 8783 resistance level then 8800 is the obvious next resistance being the recent high and the round number. It's also the key fib for today. Higher up we then have R2 at 8818, but with a long weekend looming we may well see some profit taking at the end of the day and a dip back down from any short term highs.
On the news front UK retail sales have just come in better than expected, rising again for the fourth consecutive month. Retail sales volumes were up 1.2% in April 2025, following a rise of 0.1% in March 2025 (revised down from 0.4%).
The S&P500 2h chart is also bearish for today and has Hull MA resistance at 5870 - should we see this area then a short here is worth taking as again we may well see some profit taking ahead of the weekend. The bulls will be keen to defend the 5840 to start with this morning, as we have the bottom of the 20d Raff channel here.
The DAX40 presents a similar picture with initial support from the daily pivot at the 23978 level. If this holds then a climb towards the 24153 key fib level would fit well, with profit taking also on this later.
The Raff channels on the daily charts continue to rise across the board, so still buy the dips for the moment, though the sell offs are still playing out well too. Key thing is to trade off the key levels!
Good luck today and have a great long weekend.
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