UK Stocks fall under pressure alongside European peers with the FTSE Index closing down 3.2% at 6704.05 points with the latest developments leaving the oil, mining and banking sectors beat. Considering OPEC’s meeting ended with no decisive production cut to lead the way and ongoing US-Sino tensions following a high profile Huawei executive arrest, investors’ confidence is drained and uncertainty will loom until further clarification is made on Brexit negotiations in the week to follow.
The Footsie reaches a 52 week low and struggles to extend any gains above the 20 moving average as it falls down the lower Bollinger band. Bearish momentum is still at height and the index must break above the middle band to indicate signs of short term relief. Any bounce is likely to face resistance at 6850 before continuing on a strong downtrend reaching support level at 6640.
Support: 6640/ 6525
Resistance: 6851 / 6905