- Summary:
- In this FTSE 100 index analysis, we explain why it is holding steady ahead of the Penning Group and Imperial Brands earning set for today
The FTSE 100 index rose slightly in the futures market ahead of key earnings by Imperial Brands, Pennon Group, and 3i Group earnings. The index is trading at £6,765, which is more than 2.55% above last week’s low of £6,615.
What happened: The FTSE 100 index bounced back as investors reacted to the relatively positive news about the UK recovery. In a speech during the weekend, Boris Johnson said that the country’s growth would resume as it continues to implement the vaccination. It has already vaccinated more than 29 million people, almost half of the population. In total, analysts expect that the country will vaccinate most of the population in the next few months.
Today, the top FTSE 100 companies that will publish their earnings are Imperial Brands and Pennon Group. Analysts expect that the two companies will do reasonably well.
FTSE 100 Technical Outlook
The FTSE 100 index has rebounded since March 25, when it declined to £6,613. On the four-hour chart, it has moved above the 25-day and 15-day exponential moving averages (EMA). It is also approaching the important resistance at £6,815 while the Relative Strength Index (RSI) has moved close to the overbought level. Therefore, the index may keep rising as bulls target the next key resistance level at £6,815. However, a decline below £6,700 will invalidate this trend.
FTSE index chart
