- Summary:
- FTSE 100 fell over 8% in early Monday trading as crude oil prices tumble after Saudi Arabia started a price war as Russia walked away from the OPEC+ meeting
FTSE 100 fell over 8% in early Monday trading as crude oil prices tumble after Saudi Arabia started a price war as Russia walked away from the OPEC+ meeting on Friday without agreeing to further oil production cuts. The crude oil market has been under pressure the last weeks as the coronavirus impact has hammered global demand expectations. Now the index has entered a bear market as is 22% down from the 2020 highs.
Asian stock indices ended sharply lower on account of the crude oil slump. Nikkei ended with heavy losses over 5% while the index futures in Wall Street are over 4% lower.
Energy stocks in the index were the hardest hit and among the significant underperformers on the market. Royal Dutch Shell Plc A Shares are 21% lower at 1249, BP Plc is 18.59% lower at 321.88, BHP Group Plc is 15.24% at 1129 and TUI AG is 1444.35% lower at 456.80.
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FTSE 100 Support and Resistance
FTSE 100 is 7.07% lower at 6005 registering the biggest one-day decline since 2016, making fresh four year lows as the technical support levels collapse amid panic selling. The technical outlook for the FTSE index is bearish, and only a move above 6500 might give bulls a breath.
On the downside, as investors, attention shifts to lower levels, the first support for the FTSE stands at 5891 the daily low. If the FTSE index breaks below, the next support area is at 5788 the low from June 27, 2016. A move below might open the way for the low from February 12, 2016 at 5707.
On the flip side, the first resistance for the FTSE stands at 6,462 the daily top. The next resistance level for the FTSE is at 6705 the high from Friday’s trading session. A move above might test the next supply zone at 6824 the high from March 5th.