- 46.15 points is the FTSE's largest single-day drop in 2 weeks.
- The FTSE is eyeing the 7,544 support level
Though in the midst of a month uptrend, gaining a total of 10.18%, (741.34 points), Today's session suggests run might be coming to an end — the FTSE slid down from 7,567.54 to 7,521.39, losing 46.15 points (0.61%) today.
The index has been trending positively for about a month. The FTSE hit a significant low of 6,826.2 around a month ago, but has since recovered 10.86%.
FTSE made an initial break below its 5 day Simple Moving Average at 7,553.46, a possible indication of a forthcoming negative trend. The FTSE's upper Bollinger Band® is at 7,614.76 which indicates a further downward move may follow. In contrast, the FTSE could begin to recover as it approaches significant support, now 22.74 points away from 7,544. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen today and forecasting the FTSE to extend its recent losses.
Fundamental indicators – following a previous reading of 53.2, Construction PMI in United Kingdom released today at 09:30 UTC fell short of the 52 figure expected by analysts with an actual reading of 50.4.
In the meantime, negative performances are also seen in other markets, S&P 500 is down to 3,941.26, losing 57.74 points, after ending the previous session around 3,999. Nasdaq lost 2% today and closed at 11,240. KOSPI Composite Index lost 1.08% today and closed at 2,419.32.
Upcoming fundamentals: United Kingdom House Price Index is expected tomorrow at 07:00 UTC.