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FTSE 100 Index in Biggest One-Day Drop Since Jan 29 on Coronavirus Resurgence Fears

Trade ideas

Investors fearing a coronavirus resurgence have sent the FTSE 100 index crashing this Monday. The FTSE 100 index looks set for its biggest one-day drop since 29 January, after a jump in coronavirus cases dampened “Freedom Day” optimism. 19 July was supposed to be the day that the final restrictions were eased in the UK. However, a double dose of bad news sent investors reeling, offloading stocks to pursue safe-haven assets. 

UK Prime Minister Borish Johnson and Chancellor Risha Sunak are self-isolating after being in close contact with Health Secretary Sajid Javid, who tested positive for COVID-19 over the weekend. Javid is fully vaccinated with the AstraZeneca vaccine and is said to have only mild symptoms.

The FTSE 100 is trading at 6821 as of writing, 2.3% lower.

Technical Levels to Watch

Price is currently testing the 6813.0 support (14 January/16 March highs). A bounce off this level allows the pair to attain the 6872.2 resistance, with 6900 (12/19 May lows) and 6964.0 serving as upside targets.

On the flip side, a breakdown of 6813.0 clears the pathway for sellers to aim for 6739.0. Below this level, 6699.6 and 6608.0 serving as additional targets to the south.

FTSE 100 Daily Chart

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