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FTSE 100 Starts Lower On Profit Taking

FTSE 100
FTSE 100

FTSE 100 starts lower as investors are booking some profits from the relief rally. The World Health Organization said that the coronavirus pandemic is not over as over 136.000 new infections reported on Sunday. UK government is planning to reduce the two-metre distancing in a move to support the travel industry, as thousands of New Yorkers returned yesterday to their jobs. 

BRC group reported that UK retail sales fell 5.9% overall, despite a 7.9% increase in like-for-like sales – the most significant jump on record.

In corporate newsBritish American Tobacco warned that revenues and earnings would both take a hit due to coronavirus restrictions in its international markets such as Vietnam, Bangladesh, and Malaysia and the continued lockdowns in countries including South Africa, Argentina, Mexico and Mexico.

Lloyds Banking Group (LLOY) is 1.65 lower at 36.27, Vodafone (VOD) is 0.03% higher at 141.11, Barclays (BARC) is 2.87% lower at 127.94, RBS is 2.21% lower at 137.25, BT Group is 0.59% lower at 125.70 and Tesco is 0.66% lower at 227.20.

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FTSE 100 Technical Analysis

FTSE 100 is 0.69% lower at 6,428 on profit-taking but keeping the short term positive momentum as it holds above the 100-day moving average. The index technical picture is bullish above the 100-day SMA, but in case the index breaks below then might follow a sharp correction. 

On the downside, first support for the FTSE 100 will be met at 6,417 the daily low. Next support zone stands at 6,351 the 100-day moving average. If the bears break that level, then the next support is at 6,167 the low from June 2.  

On the flip side, the initial hurdle for the FTSE index is at 6,475 the daily high (lower high). The next resistance stands at 6,526 the high from yesterday’s trading session. Next resistance level to watch is the 200-day moving average at 6,845.   

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