UK stocks sold off on Friday. FTSE fell by 70.9 points or 0.96% points to 7,350 as market participants square their positions ahead of a busy week ahead.
The biggest loser was Tesco with a 3.37% loss for the day at 229.40, followed by J Sainsbury which was down 2.99%. In third was St. Jamess with finished 2.73% in the red.
On the other hand, gainers were led by Ocado Group. The online retailer enjoyed a bullish rally when it announced that it partnered with Aeon, which is Japan’s largest supermarket.
Poll Results to Affect FTSE 100?
According to some reports, a few investors are minimizing their risks ahead of the UK elections which is scheduled on December 12. Last week, poll results from YouGov suggests that the Conservatives may get majority seats in parliament. If true, it would be easier for incumbent Prime Minister and Tory party leader Boris Johnson to pass a Brexit plan. However, it would seem that this was not enough for market participants to feel at ease in exposing their portfolios to UK stocks. The latest poll from Survation, which was released over the weekend, may only add to market jitters. Statistics show that the Conservatives lead narrowed to 9 points over Labour. This caused GBPUSD to incur a 30-pip weekend gap.
On the 4-hour chart, we can see that resistance at FTSE’s month-to-date highs held. The stock index retreated from 7,432.9 on Friday. In fact, it did not find any support on the 100 SMA as it closed below the moving average.
If sellers continue to dominate today’s trading, FTSE could track lower to around 7,260.9. This price coincides nicely with the rising trend line from connecting the lows from October 3 and November 21. It is also a previous support level for the index on October 31, November 11, and November 15.
On the other hand, if risk appetite picks up today, FTSE could rally back up to re-test resistance at 7,432.9.Download our latest quarterly market outlookfor our longer-term trade ideas.
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