FTSE 100 Lower As Yesterday’s Rebound Failed

Summary:
• FTSE 100 is lower today as the coronavirus continues to spread outside of China, with South Korea being the second most impacted country

FTSE 100 is lower today as the coronavirus continues to spread outside of China, with South Korea being the second most impacted country while confirmed cases continue to rise in Italy and Germany. The total number of cases outside China is now 3,667. A positive sign is that new infections in China trending lower the last week. The WHO said that 80% of cases only experience mild symptoms and recover quite quickly.

Stocks yesterday made an attempt to stabilize with Wall Street spending some time in positive ground ending the session finally mixed. Investors sentiment has turned from excessive optimism to pessimism in just five trading sessions.

The UK will publish its negotiation objectives ahead of the upcoming trade negotiations with the EU starting next week. Both sides are keeping a hard stance ahead of the talks.

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FTSE 100 Support and Resistance

FTSE 100 is 1.51% lower at 6936 hovering now below the Bollinnnger Bands and have also reached oversold levels. The technical outlook is negative as the FTSE index makes consecutive lower highs and lower lows.

Investors attention has turned to lower levels, the first support for the index stands at 6851 the daily low. If the FTSE  index breaks below, the next support area is at 6830 the low from January 30, 2019. A credible break below might open the way for the low from January 29^th 2019 at 6748.

On the  other hand, the first resistance for the FTSE  index stands at 7,042 the daily top. The next resistance level for the index is at 7159 the high from February 25^th.  A move above might test the next supply zone at 7365 the 200-day moving average.