The FTSE 100 dropped after British retailer ASOS forecasted weak sales figures for November, cautioning against a frugal month for consumers. Moreover, A day after the Fed’s interest rate decision on Wednesday, The Bank of England will hold a policy meeting making it a busy week for equity markets alongside growing speculation of a second referendum for Brexit. Lingering concerns about global economic growth as well as continued geopolitical uncertainty are also adding pressure to stocks in London. German business climate index data released today will further clarify the economic landscape for the Eurozone and in turn the pressure on the Footsie Index.
The Footsie slipped 1% to close at 6776.24 as it continues to hold its ground below a support now turned resistance level of 6850. The FTSE 100 is testing support at 6720 with an RSI reading leaning towards a bearish move that could push sellers to a bottom of 6680. Should the index bounce off its support it shall range within the bounds with the 50-period MA acting as resistance at 6908.
Support: 6680/ 6650
Resistance: 6837/ 6908