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FTSE 100 Focus - 10 August 2018
The FTSE100 has extended this week’s reversal, down another 60pts after breaching 7720 support. The architect is additional USD strength, hurting the key commodities space ($ denominated metals and oil prices lower). This derives from EUR weakness (and persistent GBP weakness) after the ECB sparked concerns of banking sector contagion, highlighting continental bank exposure to Turkish counterparts which may find borrowers struggling to repay/refinance debt in the face of a falling Lira (TRY) currency (US-led sanctions compounding economic concerns). GBP weakness (Brexit uncertainty + USD strength) not helping the index one iota.
Contributors: FTSE -60pts, suffering under big negative contributions from BP/RDSB (lower oil prices), GLEN/RIO/BHP/AAL (lower metals prices), HSBC (heavyweight, risk-off), GSK (profit-taking), EVR (lower metals prices, new Russia sanctions), RR (broker downgrade) and VOD (more profit taking). Offering paltry buoyancy are CCL (breakout, lower oil prices), NG (defensive, momentum) and TUI (rebound from sharp drop).
Technicals: The FTSE100 has broken below 7720 to revisit 7680 levels last traded Tuesday.
Click below to expand sections for more detailed analysis
- Will the index fall towards lows of 7537 (-147pts) ? or;
- Will the index rise towards highs of 7795 (+111pts)?
The FTSE100 has broken below 7720 to revisit 7680 levels last traded Tuesday.
Watch levels: Bullish 7795, Bearish 7680
Solid Green line
Solid Red line
- Trend: Dowtrend
- Potential support: 7680, 7657, 7635, 7590, 7564, 7537
- Potential resistance: 7965, 7710, 7720, 7735, 7755, 7770, 7795
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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