FTSE 100 Breaks Below the 100-day MA on Brexit Day
FTSE 100 continue lower for the second day in a row after the Bank of England kept its benchmark rate unchanged at 0.75%. FTSE continues to underperform its European peers as Brexit is effective from 23:00GMT today. A three years procedure that dragged the UK economy amid the continued uncertainty. Now an 11-month exit period will provide volatility as the headlines will hit the wires while negotiations with EU progress.
Yesterday, World Health Organisation (WHO) declared the coronavirus outbreak a global health emergency. Now there are over 8,200 confirmed coronavirus cases and 175 deaths. Several airlines cancelled the trips to China, while Russia closed the borders with China.
FTSE 100 is 0.36% lower at 7355 cancelling the recent positive momentum. While the main European major stock indices are trading higher. Dax is 0.34% higher at 13202. CAC 40 is 0.37% higher at 5893.
The Bank of England decision yesterday to keep rates unchanged weigh on FTSE as the sellers took control. Yesterday the index broke bellow the 100-day moving average but managed to close above that critical support. Today the selling pressures continue and as of writing the FTSE index breached below the 100 and 200-day moving average. A close below the two major moving averages will cancel the bullish momentum that started after the UK elections in December.
On the downside, immediate support for the FTSE index stands at 7,353 the daily low. Next support for the index is the daily low at 7226 the low from December 13th. If FTSE 100 index breaks below, the next support zone will be met at 7136 the low from December 6th.
On the upside, first resistance for the FTSE stands at 7,398 the daily top. Next resistance will be met at 7464 the 50-day moving average. The next supply zone for FTSE 100 will be met at 7517 the high from January 29th.