Technical analysis for FTSE 100 for 24th January 2025
The bulls have hung in there well this week but have still failed to break above the 8580 level which remains the line in the sand at the moment. That also ties in with R1 at 8585 to start with today so we could well see an initial drop down from this area to test the main support at the 8520 level.
With S1 and the 30m 200ema here I would like to see this hold for a decent end to the week. However the news backdrop is quite pessimistic with job cuts announced by Sainsbury's (first of many) along with the slow down in manufacturing. We also have PMI data this morning at 0925 and 0930 which may also disappoint and weigh on sentiment.
Prior to the 8520 level we do have the daily pivot at 8547, and that is just below the green 30m coral as well so there could be a reaction here if the bulls want to defend from the off.
Below 8520 and we could slide down to the next key daily support at the 8467 level. I am more inclined to go with the 8520 holding though as that also links in with the bottom of the 10d Raff channel, which continues to head up along with the 20d Raff.
Initially the Hull MA on the bearish 2h chart is resistance at the 8587 level as well, so the bulls will be looking to break this if they are to push on today. A move up to R2 at 8609 may well then play out, and should it get very optimistic then 8647 is R3 and just above the daily key level at 8640.
Bear in mind that as its Friday it can be worth being a bit more cautious, however Asia had a fairly positive session and the US may well follow suit as the Trump optimism continues.
The S&P500 will be looking to break above the 6121 level and put in a a rise towards 6142 and 6151, whereupon we may see some profit taking ahead of the weekend.
Good luck today and have a great weekend.
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