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FTSE 100 Gets Rejected at Resistance on New Year’s Eve

FTSE 100
FTSE 100

FTSE 100 CFDs steadily traded lower yesterday as soon as it opened at 7,628.9. By the end of yesterday’s trading, UK’s blue-chip stock index had settled at 7,569.2.

Gainers and Losers on the FTSE 100

Fresnillo led gains at 3.39%. In second was NMC Healthcare at 2.74% which saw its first gain in days since the company faced allegations of financial mismanagement. Persimmon then rounded up the top 3 best performing-stocks with a 1.74% profit.

On the other hand, Evraz led losses at -2.85%. It was followed by Rentokil Initial which was down by 2.84%. Meanwhile, Bunzl was the third biggest loser in yesterday’s trading with a 2.69% loss.

US-China Trade Deal to be Signed Soon?

There were no reports directly affecting the FTSE 100 yesterday. However, earlier this morning, rumors came about that the US and China will soon sign their phase one deal. A Chinese delegation is reportedly preparing to fly to Washington this coming weekend to finalize their agreement. FTSE 100 saw some volatility following the news when it spiked up to 7,569.2 after dropping to 7,529.6.

Read our Best Trading Ideas for 2020.

FTSE 100 Outlook

On the weekly chart, we can see that the FTSE 100 got rejected at resistance on the falling trend line (from connecting the highs of May 20, 2018 and July 28, 2019). Now, if sellers continue to dominate trading in the next few weeks, we could see the stock index fall to the 50% Fib level (when you draw the Fibonacci retracement tool from the low of December 8 to the high of December 22). This price, around 7,397.9, also coincides with recent highs.

On the other hand, if there are enough buyers to push FTSE 100 above December highs at 7,676.7, we could see the stock index rally to its year-to-date highs at 7,728.9.