Market News & Analysis
FTSE Tanks Despite Sunak's Blowout Bailout
Fiona Cincotta March 18, 2020 8:11 PM
The bloodbath is resuming on Wednesday. After recording gains of 2.7% in the previous session, the FTSE is plunging lower in early trade as the Chancellor’s blowout bailout has failed to maintain any level of positivity in the markets.
Eyes are now turning to the European Stability Mechanism and what more the White House can bring to the table.
With fear driving the markets and coronavirus numbers escalating, there is a good chance that this overly bearish picture won’t show any signs of improvement until the coronavirus numbers themselves start to improve.
Levels to watch
The FTSE is trading down 3.9% at 5088 the time of writing. It trades below 50,100 and 200 sma on 4-hour chart, a bearish chart.
The price found support for a second straight session just shy of 5000. Immediate support is at 4996 (today’s low), prior to 4987 (yesterday’s low) before 4840 (16th March low).
Resistance can be seen at 5370 (yesterday’s high) A break above this level is needed to negate short term bearish trend. Resistance is then seen at 5700 (13th March high).
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.