Technical analysis for FTSE 100 for 16th April 2025
We certainly got the rise and dip yesterday play out well, especially on the S&P500, which dropped off the 5445 resistance very well indeed, and has continued overnight following a bearish Asian session. I am thinking that we may well see a similar pattern today though with a rise and dip as the 2h chart just about remains bullish to start with on the FTSE100.
U.K. inflation cooled by more than expected in March, providing some room for the Bank of England to cut interest rates once more next month. Annual consumer price inflation rose 2.6% in March, below the 2.8% seen the prior month, but still above the U.K. central bank’s 2.0% medium-term target. The monthly rate rose 0.3%, below the 0.4% seen in February.
8197 is the daily pivot and whilst we are just below this as I am writing this we may well see the bulls try and move above this early on. A failure to do so and then a drop down to the 8130-8145 support zone may well materialise. 8129 is S1, while 8146 is the key fib so I would like to see a bounce here if it gets tested.
Below the 8146 level then we have the 30m 200ema at 8110 and then 2h coral at 8070 to look out for and try longs off if they hold.
Meanwhile the bulls will be trying to get it back above the 8200 level initially, and a rise to finally test the 8280 resistance level on the daily chart. That also ties in nicely with the R1 level for today at the 8279, and just above the key fib resistance at 8265, so should we see a rise to this area then a dip off this would make sense.
The ASX200 had a similar pattern today and we may well follow suit, especially if traders feel confident that the BoE is likely to cut rates soon (I am still expecting the rate cut in May as you know).
If they were to break above 8280 today (not expecting them to do so but you never know!) then 8335 is the 200ema on the daily and also another test of the 25ema - so a stutter here would be very likely. R2 is just above at the 8347 level as well.
So, look for the rise and dip again and good luck today.
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