Technical analysis for FTSE 100 for 22nd January 2025
Well the bulls continued the rise yesterday but we have stalled overnight at the upper most daily resistance level of 8569. As such we could see a retest of that in hours today and a possible bearish reaction for a leg down to the daily pivot level and possibly lower at 8540. 8600 is also the Hull MA on the 2h chart which is currently bearish so may well also lend some weight to this area if we were to get that high.
The 2h coral is however bullish, and remains green and untested with support at the 8525 level. As such we may well see a reaction here, and it is fairly close to the S1 8508 level, so any dip down to here may well see the bulls appear again.
The US daily charts are now looking more bullish following the strength this week, with both the Raff channel now heading up on the S&P500. The 2h chart has crossed to bullish and has support at the 6060 area so keep an eye on this for support.
US strength will also help to keep the FTSE100 heading upwards as well. If the bulls break above the 8570 level then 8600 has R1 and the key fib, as well as round number resistance so may well see a reaction, Above this 8629 is R2 though with news coming out of Davos as we go through the day we may well see some caution and this may be a big ask, though the top of the 20d Raff channel has now moved up to 8659 if they were to break R2. It's not been a good week for bears with the resistance levels getting muted reactions, if any. Momentum certainly remains with the bulls at the moment.
On the bearish side, below the daily pivot 8540 then 8480 offers good support with the key fib and 30m 200ema here. Ergo a long around this area is worth taking for a likely push back above the 8500 level.
Earnings have been coming out pretty positive, and probably likely to continue this week. The main news all revolves around Davos today rather than scheduled releases, with ECB President Lagarde speaking today.
So watching the 8570 and 8600 levels for shorts, 8525 and 8480 for supports.
Good luck today.
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