The bulls were slightly on the back foot yesterday as the drop from 8120 gained some momentum and Meta drove the bears into a bit of a frenzy. More tech earnings this evening as well with concern that the AI driven rally is running out of steam. That said, the 8000 level has held as support for the moment, and we are already testing the first key resistance level at the 8050 area where we have the daily pivot and the 30m coral. As such we could see an initial dip off this to retest the overnight low and the 30m 200ema at the 8012 level, though the bulls will be keen once again to pull away from this and get a climb underway towards the 8100 level. This 8100 area looks to be key resistance today as we have R1 at 8089 and also the key fib at 8095. Also throwing its hat into the ring we have the Hull MA on the 2h here, as that has gone bearish with the drop yesterday.
The powers that be will bee keen to keep the rally going as well and some more positive headlines about all time highs on the FTSE100, and people's climbing portfolio values to create some good will as we lumber towards the election later this year. Above the 8100 level then the recent high at 8120 is next up, and 8161 for R2 though that feels a big ask for today. We have the US GDP at 1330 today as well with the forecast being 2.5%, down from 3.4% Support wise, then if we break the 8010 area, and also the key 8000 round number then the 7973 S1 level would probably be seen. That is also below the key fib at 7985 so the bears will need to get some power behind their move. Lower down 7930 is S2 and would likely be seen if they do so. The Raff channels continue to head up though, despite yesterday's dip, and another test of 8100 looks distinctly possible.
Ironically the US is looking weaker just as the FTSE100 starts to get its game on! Good luck today.