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May 02, 2023
- Price action breaks below important support level at 7,818
- Price action is currently stuck around the active Fibonacci support level of 7,836.49
The FTSE's downtrend has seen it decline 1.59% in 5 days More of the same from today's session: after a mostly steady day, the FTSE lost 1.24% deep into the session, ending up at 7,773.
The index has been trending positively for about a month. The FTSE is now trading 15.3% above the significant low (6,826.2) it slumped to 6 months ago.
FTSE fell below the 7,818 support zone and moved 44.91 points beyond it; the next level of support with significant buyer interest is estimated at 7,765.32. The FTSE made an initial break below its 50 day Simple Moving Average at 7,858, a possible indication of a forthcoming negative trend. The FTSE is currently flirting with an active Fibonacci support level around 7,836.49. On the other hand, note that the FTSE's lower Bollinger Band® is at 7,647.46, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
In general, examining the technical analysis landscape, although indicators are mixed further drawbacks may be next for the FTSE.
Fundamental indicators – United Kingdom Manufacturing PMI came out at 47.8, while a consensus of analysts was expecting 46.6.
In the meantime, negative performances are also seen in other markets, after ending today's session at 7,491.5, CAC lost 108.3 points and is trading around 7,383.2. Dow Jones retreats 1.21% today and closed at 34,052. After ending today's session at 4,359.31, EuroSTOXX lost 64.31 points and is trading around 4,295.
