FTSE 100 Ends in the Red But Technicals Suggest It Could Rally Soon

ftse 100
ftse 100

Unlike its other counterparts like the DAX Index and Nikkei 225, the FTSE 100 finished today’s trading in the red. The UK’s stock index lost 0.88% or 51.4 points when it closed at 5,791.3 as most British equities investors seem to still be on holiday mood.

British online supermarket led gains with 7.85%. Meanwhile, pharmaceutical company AstraZeneca came in second with a 6.64% profit for the day. Then, chemicals company Croda rounded up the top three with a 6.28% uptick.

On the other hand, Barratt Developments was today’s biggest loser at -9.62%. Informa and Intercontinental followed suit with losses of 7.40% and 7.36%, respectively.

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FTSE 100 Outlook

On the 1-hour time frame of FTSE 100 CFDs, it can be seen that the UK’s stock index is testing a confluence of support. Trading around the 5,800.0 psychological handle, FTSE 100 is also testing support at the rising trend line from connecting the lows of April 3, April 8, and April 9. This price also coincides with the 38.2% Fib level when you draw from the low of April 8 to today’s high. Reversal candlesticks around this price may suggest that FTSE 100 is on its way to retest today’s highs just below 5,941.00.

On the other hand, a close below today’s lows at 5,777.3 could suggest more selling ahead. The next floor could be at 5,571.6 where FTSE 100 bottomed on April 8.

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