Technical analysis for FTSE 100 for 12th May 2025
Well off we go and Bull Monday has already started! Positive news on a US/China trade deal has seen markets gap up which will likely result in a positive vibe for the rest of the day, with buy the dip still in play. As mentioned previously I can see the bullishness continuing until the end of the month.
Initially today though the FTSE100 may well dip down from the 8590 level tested as we have the red 2h coral resistance here and technically the 2h chart is still bearish, though that is likely to change soon. A drop down to the daily pivot and 30m coral at 8549 and 8555 respectively, should then see the bulls reappear for a push back up. We also have a gap from Fridays close at 8544 which is likely to close and lends support to that area.
The bulls will be looking to break the 8600 level which was where it spiked to overnight, and that would bring the 8630 resistance level into play. 8638 is also R3 for today and a test of this area should see the bears have a go.
Above 8635 and then the next level of note to look out for is 8694. The Raff channels are continuing to head up maintaining that bullish bias, and positive news flow on tariffs is outweighing most other more bearish news at the moment. UK jobs market, wars, economic woes, etc are there but in the background.
If the bears were to break below the daily pivot though at 8550 then we can look for a slide down to the S1 level at 8516, and then we still have the untested 25ema on the daily, now at 8470. I am not expecting it to get that low but if it did so then a long here is worth taking.
Generally I am maintaining my buy the dip outlook on the longer times frames. No major scheduled news today, but we do have the US CPI tomorrow which will likely lead to some volatility then. Today I think it may well just be a straightforward dip and rise day. hopefully that isn't famous last words!
Not too much more to say really, keep an eye on the 8550 level for support, 8630 for resistance.
Good luck today.
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