FTSE 100 after a positive start turn negative as Prime Minister Johnson put the country in lockdown due to the coronavirus outbreak. Investors sentiment is still weak despite the coordinate intervention by central banks around the globe. Markets now await fiscal stimulus as Finance Minister Rishi Sunak will release the details from the budget with respect to helping households and small businesses who will be hit hard by the restrictions amid the coronavirus outbreak.
Expectations of one more rate cut by the BOE have risen amidst the ongoing meltdown in global markets as well as quantitative easing measures in the next days, certainly by March 26 at the latest.
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FTSE 100 Technical Levels to Watch
FTSE 100 is 1.54% lower at 5079 as an early attempt to positive ground met with strong selling pressure. The technical outlook is clearly bearish as the FTSE index make for the ninth consecutive session lower lows and lower highs. The index is in deeppply oversold level and a sharp rebound can’t be ruled out.
On the downside, the first support for FTSE stands at 5,057 the daily low. In case the FTSE index breaks below, the next support area is at 4891 the low from yesterday’s trading session. More support would be met at 4,074 the low from November 24, 2011.
On the other side, initial resistance for the index stands at 5,309 the daily high. The next hurdle for the FTSE index is at 5,361 the high from yesterday’s trading session. A credible break above might test the next supply zone at 5694 the high from March 13th.
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