FTSE bearish potential persists – FXStreet

By FXStreet The FTSE 100 fell to a 3-week low, down 0.90% to close at 6,185.59, as poor manufacturing data coming from China weighed on the mining sector. Shares in Anglo American dived 12.8%, Glencore fell 8% and BHP Billiton dropped 6.2% on the news, whilst the index’s negative tone was fueled by another batch of poor earnings reports all across Europe.

Particularly in the UK, Aberdeen Asset Management dropped 7.4% after reporting a sharp fall in half-year profits, affected by the downturn in emerging markets.

FTSE technical view

“Holding near close ahead of the Asian opening, the daily chart for the index shows that its back below the 200 DMA, while the technical indicators present bearish slopes having broken below their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart presents an even stronger bearish potential, given that the technical indicators head strongly lower near oversold levels, whilst the 20 SMA has accelerated its decline and is about to cross below the 100 SMA, both above the current level.”

Support levels: 6,157 6,101 6,062. Resistance levels: 6,214 6,256 6,310.
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Source:: FX Street