FTSE: technical indicators head strongly lower

By FXStreet The FTSE 100 advanced 40 points or 0.71% on Wednesday, closing the day at 5,672.30, helped by a recovery in the banking sector, after sharp falls during the previous sessions. Among local ones, Barclays advanced 3%, the Royal Bank of Scotland was up 6.6p and HSBC gained 8.2p ahead to 440.7p.

The Footsie held onto gains, despite the mining sector edged lower, with Antofagasta down by 3.1% and Randgold Resources by 3.5%.

FTSE technical perspective

“Trading around 5,637 ahead of the Asian opening, the daily chart shows that the index continued declining below a bearish 20 SMA, while the technical indicators head strongly lower below their mid-lines, maintaining the risk towards the downside”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators hover near oversold territory with no clear direction, while the 20 SMA has extended its decline further below the 100 SMA, both well above the current level, also supporting a bearish continuation for this Thursday”.

Support levels: 5,604 5,562 5,510. Resistance levels: 5,692 5,760 5,808.
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Source:: FX Street