FTSE 100: UK Banks Spike as Rolls Royce Share Price Sinks (Again)

The FTSE 100 is in high spirits today, up by more than 0.85% in the morning session. The index is trading at £5,940 and is in its second consecutive day in the green. Most firms in the index are in the green today, with only five firms in the red. Rolls Royce share price is down by more than 4% and is followed by Kingfisher, GVC Holdings, and Flutter Entertainment.

InvestingCube's S&R Levels

NAS100

NAS100 (11325)

Not in Sell Zone

STOP

SELL

TP1

11182

TP2

11000

Rolls Royce share price sinks

Rolls Royce, one of the best-known British brands is the worst-performing in the FTSE 100. The company’s stock is falling after it emerged that Kuwait’s state fund was considering taking a stake in the iconic British company. The fund is considering providing at least £2.5 billion in funding in the company. Equally interested in the company is Singapore’s Government Investment Corporation (GIC).

The new talks of funding comes at a time when Rolls Royce is going through its worst financial crisis on record. Its cash balance is waning and the firm is also experiencing significant contract cancellations because of the coronavirus pandemic.

Rolls Royce share price is trading at 148p, a far cry from its all-time high of 1,100p in 2018.

FTSE 100 technical outlook

The daily chart shows that the FTSE 100 index is in its second straight gains. It is trading at £5,940, which is its highest point since Tuesday last week. The price is attempting to move above the 50-day and 25-day exponential moving averages.

It is also slightly above the 38.2% Fibonacci retracement level. Therefore, I suspect that the index will continue rising as bulls aim for the important resistance level at £6,000. On the flip side, a move below last week’s low of £5,780 will invalidate this prediction.

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FTSE 100 technical chart

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