FTSE 100 Ends in the Red But Technicals Suggest It Could Rally Soon

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Written By: Angeline Feliciano

Apr 14, 2020, 17:53 BST 17:53

ftse 100

Summary:

FTSE 100 came back from the Easter holiday with a 0.88% loss. However, techincals on the 1-hour chart suggest it could rally soon.

Unlike its other counterparts like the DAX Index and Nikkei 225, the FTSE 100 finished today’s trading in the red. The UK’s stock index lost 0.88% or 51.4 points when it closed at 5,791.3 as most British equities investors seem to still be on holiday mood.

British online supermarket led gains with 7.85%. Meanwhile, pharmaceutical company AstraZeneca came in second with a 6.64% profit for the day. Then, chemicals company Croda rounded up the top three with a 6.28% uptick.

On the other hand, Barratt Developments was today’s biggest loser at -9.62%. Informa and Intercontinental followed suit with losses of 7.40% and 7.36%, respectively.

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FTSE 100 Outlook

On the 1-hour time frame of FTSE 100 CFDs, it can be seen that the UK’s stock index is testing a confluence of support. Trading around the 5,800.0 psychological handle, FTSE 100 is also testing support at the rising trend line from connecting the lows of April 3, April 8, and April 9. This price also coincides with the 38.2% Fib level when you draw from the low of April 8 to today’s high. Reversal candlesticks around this price may suggest that FTSE 100 is on its way to retest today’s highs just below 5,941.00.

On the other hand, a close below today’s lows at 5,777.3 could suggest more selling ahead. The next floor could be at 5,571.6 where FTSE 100 bottomed on April 8.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.