Futures indicate the FTSE100 index to open 62 points lower at 6,900 on Thursday. The FTSE100 index closed up 0.1% at 6,963 on Wednesday, pulling back from some earlier gains which saw the blue-chip index trading as high as 7,050. In the US on Wednesday, Wall Street ended sharply lower after a string of disappointing corporate earnings results. This selloff will likely impact the European bourses negatively today. Looking ahead in the UK some big names such as Lloyds Bank, advertising firm WPP, and department store Debenhams are releasing Q3 results today.
Technically speaking the FTSE was unable to break through key resistance levels yesterday and it ran into sellers around 7050. Instead, prices broke the support at 6960 and are quickly approaching key support levels on a daily timeframe which will likely attract bargain hunters. The RSI looks bearish on the hourly chart signaling more decline in the short-term.
Support: 6925 6865
Resistance: 6960 7050