The FTSE 100 ended the session 0.9% down at 7343.7, a new 5-month low, as the index is getting hit with concerns of slowing growth in China. The biggest impact is on the mining sector which makes up more than 8% of the FTSE100 by market capitalization. In economic news, investors await the Halifax House Price Index data and the inflation figures due today.
Technically speaking, the index is showing major signs of weakness by printing lower highs and with little or no corrections to the upside. Bearish reversal bar formed on the 1H timeframe is expected to push prices lower to break our first support level at 7305.6
Support: 7305.6 7196.6
Resistance: 7419 7524.6