The British FTSE 100 equity index was not left out of harm’s way in the wake of the European equity turmoil that happened in the past couple of days. The index opened on the lower end just like every other European equity index yesterday reaching a supportive low of 6,900 that managed to hold the index from the further movement as it has in the past.
From there, the index rose back upwards towards the 7,000-mark, which has become the current level of resistance that marks a good reversal level for the entire index. As the index rose to the mentioned level, it encountered two Moving Averages at the 7,000 level, the 50-Hour and 100-Hour Moving Averages that held the index from any further upward movement.
That rally happened right into the close of the day as the U.S. equity market seemed to bounce from the lows of the day and stage some sort of comeback, which seemed to have translated into the European market as can be seen by the movement in the British Index.
This mornings movement reflects another downward gap, as it struggles to break below the 6,950. There seem to be some pretty important supports for the index situated at the 6,950 followed by the 6,925 and acting as a “floor” of some sorts is the 6,900 which held the index from any further movement downwards.
The presence of the supports in such close proximity to each other gives the impression of a hard time ahead for the index if it aims to continue to move lower. It might eventually be able to break through all three if the index finds enough of a downward momentum to do so, but even with that, it won’t be a smooth ride downwards as bulls will be present to attempt to stop any further movement lower.
Looking at the RSI, which has moved back above the 40-level and currently printing between the 40- and 60-levels, it shows that the index is unsure of which way it plans to go as the important resistance at 7,000 and plethora of supports underneath are imposing figures for the index.
Currently, the best performers on the FTSE 100 are Reckitt Benckiser (+2.26% at £67.36); United Utilities (+2.02% at £7.29); and Tesco (+1.93% at £2.16). The worst performers are ITV (-1.50% at £1.50); Provident Financial (-1.42% at £5.00); and Fresnillo (-1.41% at £9.63).