The FTSE 100 index is set to bounce back after it dropped by more than 1% on Friday. Traders are optimistic about a deal between the United Kingdom and the European Union about the coronavirus vaccine. Also, they are watching out for key earning and trading updates scheduled for this week.
FTSE 100 earnings: The earning season will get into high gear this week as key companies in the UK are set to publish their quarterly earnings. Today, the biggest company to issue its trading update is Hargreaves Lansdown, the well-known broker. Experts believe that it will publish strong earnings because of the recent volatility and demand of stocks.
Other top FTSE 100 companies that will release their earnings this week are BP, SSE, GlaxoSmithKline (GSK), Vodafone, BT, BP, Royal Dutch Shell, Unilever, and Beazley, among others.
In general, oil and gas companies like BP and Royal Dutch Shell will likely release strong earnings because of the relatively strong price of crude oil. Other companies like Unilever, BT, and Vodafone are also likely to report strong earnings.You can read my outlook for Vodafone and BP share prices outlook ahead of their earnings.
FTSE 100 technical outlook
On the daily chart, we see that the FTSE 100 index was forming an ascending channel in the past few weeks. Last week, it broke-out as market risks continued to increase. It declined to a low of 6,322, which was the lowest level since December 21.
On the daily chart, the price is between the 38.2% and 50% Fibonacci retracement level. It also moved below the 25-day and 50-day moving averages. It also seems to be forming a head and shoulders pattern. Therefore, in my view, the index will continue falling this week.
FTSE 100 technical chart