FTSE 100 underperforms its European peers today giving up 0.89 percent at 7,488 as investors wait Boris Johnson first speech as Prime Minister. FTSE 100 has totally discounted the Johnson election and now the focus turns on the Brexit strategy that Johnson will follow.
On the technical side FTSE 100 is in bullish momentum but today’s losses questioning the positive short term momentum as the index breached below the 20 day moving average and the upward trend line since early June. The index today also breached all the major hourly moving averages turning the focus now on lower levels. Long positions will face resistance at 7,558 the daily high while more offers will emerge at 7,700 zone the high back from August 2018. On the downside immediate support stands at 7,403 the 50 day Moving Average and then at 7356 the 100 day moving average.
Lower iron ore prices, pressures miners like Anglo American, Rio Tinto, and BHP. Aston Martin sank 23.2% after it cut its annual sales and profit forecasts.
European indices are trading mixed midday, with DAX 30 adding 0.36% to 12,534 while the CAC 40 in Paris gives up 0.31 percent at 5,600.