Thursday, October 4, 2018

FTSE100 - 05 October 2018


Fundamental Highlights

The FTSE suffered its biggest loss since mid-August by losing 95.8 points and closing at 7440.2, as rising U.S. yields frightened investors that emerging markets will be hit by higher borrowing costs adding pressure on the global economy. In domestic politics, EU sources revealed that concessions from Theresa May on the Irish border makes a Brexit deal 'possible’ and it is said to be a 'step in the right direction' by EU negotiators. In stock specific news, major companies like British American Tobacco (down 4.1%) , British Land (down 3.8%) , and DS Smith (down 3.6%) went ex-dividend pushing the index lower. In economic news, Halifax House Price index will be released at 7:30 GMT.

Technical Analysis

The FTSE retraced higher after reaching the support level at 7418.5, failing to reach the 0.618 Fibonacci level and forming a lower high below 7450, with the 20 period SMA crossing the 50 and 200 period SMA from above, and a bearish RSI divergence that failed to confirm, all indicating strong bearish momentum. Nearest price target at 7399.3 support level.

Support: 7399.3 7368.5 7323.5
Resistance: 7442.7 7477.8 7519.6

Chart (H1)