FTSE 100 Index in Biggest One-Day Drop Since Jan 29 on Coronavirus Resurgence Fears

Published by

Written By: Eno Eteng (MSTA)

Jul 19, 2021, 17:45 BST 17:45

Summary:

The FTSE 100 index registered its biggest one day drop since January 29 on Freedom Day as investors get spooked by coronavirus resurgence fears.

Investors fearing a coronavirus resurgence have sent the FTSE 100 index crashing this Monday. The FTSE 100 index looks set for its biggest one-day drop since 29 January, after a jump in coronavirus cases dampened “Freedom Day” optimism. 19 July was supposed to be the day that the final restrictions were eased in the UK. However, a double dose of bad news sent investors reeling, offloading stocks to pursue safe-haven assets.

UK Prime Minister Borish Johnson and Chancellor Risha Sunak are self-isolating after being in close contact with Health Secretary Sajid Javid, who tested positive for COVID-19 over the weekend. Javid is fully vaccinated with the AstraZeneca vaccine and is said to have only mild symptoms.

The FTSE 100 is trading at 6821 as of writing, 2.3% lower.

Technical Levels to Watch

Price is currently testing the 6813.0 support (14 January/16 March highs). A bounce off this level allows the pair to attain the 6872.2 resistance, with 6900 (12/19 May lows) and 6964.0 serving as upside targets.

On the flip side, a breakdown of 6813.0 clears the pathway for sellers to aim for 6739.0. Below this level, 6699.6 and 6608.0 serving as additional targets to the south.

FTSE 100 Daily Chart

Follow Eno on Twitter .

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.