FTSE 100 is on a downtrend for the third consecutive session ahead of crucial earnings by the video game company Keywords, movie theatre group Cineworld, Compass, Bellway, and water company United Utilities. On Monday, B&Q’s Kingfisher PLC released relatively strong figures.
CineWorld was one of the most affected companies by the ongoing pandemic as it was forced to close shop. However, progress in vaccination has helped its share price surge by over 680% over the past five months. Nonetheless, investors still expect the company to report record-low earnings. The dull report will come at a time when the EU-UK row on vaccine supplies is threating the progress of jabs in the UK.
Notably, FTSE 100 is finding support from Kingfisher’s positive earnings report. With the rising demand for DIY products during the lockdowns, the company saw its revenue surge by 7%.
FTSE 100 Technical Outlook
After ending last week at a price consolidation pattern, FTSE 100 has started the new week on a decline as the bears test 6,630. This level is likely to be its next support-turn-resistance point. If it manages to move downwards past that point, the downtrend will continue for several sessions as the bears target the lower level of 6,549.
With the crossover of the 20 and 50-day exponential moving averages occurring in today’s session, it is also likely that the awaited events will push the index higher. If that happens, the levels to look out for will be 6,720 and 6,760.
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