FTSE 100 extends losses for the fourth consecutive session amid the rising fear of new coronavirus cases. Yesterday Tokyo reported a new record of daily infections, while Florida reported a new record of hospitalizations. The index correction this week has driven the price below the 50-day moving average while as of writing has also breached the critical 100-day moving average. A settlement below the 100-day moving average might attract more sellers for a move below the 6,000 mark.
Chancellor Sunak said that the government would not be able to save every single job as the UK enters one of the most severe recessions in history. Swimming pools, music venues and theatres will reopen from Saturday.
Heavy volumes are observed today for Lloyds Banking Group (LLOY), which is 0.76% lower at 29.52, HSBC is 0.28% lower at 3720.88, BT Group is 0.32% lower at 107.55, Ocado is 1.07% higher at 2,073. Tesco is 0.33% higher at 212.30. Barclays (BARC) is 0.41% higher at 112.40, RBS is 0.08% higher at 118.15. Vodafone (VOD) is 0.11% higher at 122.80.
FTSE 100 Daily Technical Analysis
FTSE 100 is 0.09% lower at 6,061 but off the daily lows as some bottom fishing managed to return the index above the 100-day moving average. FTSE 100 positive momentum has cancelled this week as the index breached below the 50-day moving average. A credible break today below the 100-day moving average might be the beginning of another leg lower.
On the downside, the initial support for the FTSE 100 index will be met at 6,003 the daily low. If the sellers, break that support, then the next target is at 5,954 the low from June 15 trading session. Next support zone stands at 5,885 the low from May 22.
On the flip side, the immediate resistance for the FTSE 100 is at 6,079 the daily high. The next hurdle for the FTSE 100 index stands at 6,115 the 50-day moving average. The next supply zone is at 6,284 the high from July 7.
FTSE 100 Daily Chart