Technical analysis for FTSE 100 for 28th February 2025
Quite the sell off yesterday so shorting the rallies was certainly the right play, even if the S&P500 order missed by 2 points before dropping 140! For today we may see the bulls try and fight back a bit as its the end of the month before more profit taking later towards the close. The FTSE100 bulls will be trying to recapture the 8700 area initially as we have the key fib at 8687, along with the first test of the green 2h coral at the 8692 level.
A rise towards the daily pivot level at 8741 would be good before some more bearishness as we also have the red 30m coral here. The bulls will need to be quick out the blocks though otherwise a slide down to the 8680 daily support level may well play out. This level looks pretty key as a break lower will likely get as far down as the 8580 level where we have the bottom of the 10d Raff channel.
On the way to that we have S2 at 8657 and 8615 for S3.
With the drop yesterday the 2h chart has gone bearish as you would expect and the Hull MA resistance is at the 8723 level to start with today. With a potential rise initially keep an eye on this for a reaction if it were to fail to get as high at 8741.
Above 8741, and it would be quite the turn around if it were to push on today, 8784 is R1 and the top of the 10d Raff channel. I don't think it will manage to get this high, especially as it's month end and profit taking later is likely.
On the news front at 1330 we had the US PCE price index data, with a forecasted dip down to 2.6% YoY, but a slight uptick forecasted for January.
We may well see a bit of consolidation today after yesterdays declines, and a slow move higher initially. Overnight the S&P500 has been fairly stable at the 5860 area and with the bottom of the 20d Raff channel here we may well see a small bounce on that as well. The bulls will be aiming for the 5911 daily pivot level initially, and a test of the 2h Hull MA at 5905. If they can break above these then the 5945 key fib is next up but feels a bit too optimistic for a month end!
Good luck today, hopefully we don't have orders miss by 1 point today as well before massive moves!!
Have a great weekend.
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