FTSE 100 Rebounds But Remains Vulnerable Below 7500
FTSE 100 makes an attempt to recover some of yesterday heavy losses as investors trying to assess the global economic effects of the coronavirus outbreak.
FTSE 100 is adding 0.20% at 7426 giving up most of the morning gains. The uncertainty around the coronavirus spread weighs on investors sentiment as the confirmed cases had reached 4500 from 2700 yesterday. There will be an impact on transportation and consumption and we might see a weak first quarter in China.
Investors focus will be on the Bank of England on Thursday and the monetary policy decision. The upbeat economic data from the UK economy last week have lowered the possibility of an interest rate cut on Thursday.
The steep losses yesterday threatens the recent bullish momentum as the index breached below the 50-day moving average. The FTSE 100 today rebound from the monthly lows but the gains are limited.
On the upside, first resistance for the FTSE stands at 7,452 the daily top and at 7457 the 50-day moving average. The next barrier for FTSE will be met at 7586 the high from yesterday session. Next resistance is at the yearly high from July 30th at 7,727.
On the downside, intraday support for the FTSE 100 index stands at 7,410 the daily low. If FTSE 100 index breaks below, the next critical support zone will be met at 7371 the 100-day moving average. The December low at 7135 would be the next target for the bears.