FTSE 100 Rejected at Trendline Resistance, Poised to Retest 2008 Lows

FTSE 100 is trading in the bears’ territory today as risk aversion once again dominates market sentiment. The UK’s stock index is down over 4%, trading around 5.074.0.

Leading losses in today’s trading is aerospace component company, Meggitt, which is down 21.63%. In second is Rolls Royce, being in the red by 17.76%. The third-biggest loser so far today is tour operator Carnival with a 13.88% floating loss.

Rising coronavirus cases fueled investor concerns in today’s trading. The WHO reported the biggest single-day jump of 13,998 confirmed cases in the past 24 hours outside of China. Given the impact that the coronavirus has already had in the UK economy, this news only made investors even more jittery.

Read our Best Trading Ideas for 2020.

FTSE 100 Outlook

On the 4-hour time frame of FTSE 100 CFDs, we can see that the UK’s stock index has recent bounced off resistance at the falling trend line. If risk aversion continues to dominate market sentiment, we could soon see FTSE 100 fall to this week’s low at 4,835.9. If support at that price level does not hold, the next floor could be at 4,766.5 where the stock index bottomed on August 2011.

On the other hand, a close above yesterday’s high at 5,374.7 would effectively break trend line resistance. The next ceiling for FTSE 100 could be at 5,680.1 where it peaked on March 13.

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