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FTSE100 Under Pressure As China-Inspired Rally Fades Away

27 Oct 2015, 2: 03 AM E.S.T. – The FTSE 100 was back under pressure at the beginning of the week, down by 0.42% to end the day at 6,417.02. The index has faded its China-inspired rally as commodities retreated from their highs, leading to losses in the mining-related shares.

Anglo American fell 3.12%, Glencore ended the day down 2.69% whist Fresnillo also closed down, by 1.52%. The index holds near its close ahead of the Asian opening, but the risk is turning lower, as the daily chart shows that the index remains unable to extend beyond its 100 DMA, whilst the Momentum indicator extended its retracement from overbought territory towards its 100 level.

In the same chart, the RSI indicator turned lower, but so far stands above its mid-line, around 57.

For the shorter term, the 4 hours chart suggests the downside is still limited, given that the index is above a bullish 20 SMA and a strong Fibonacci report around 6,380, whilst the technical indicators are aiming to recover above their mid-lines, but still lacking upward strength.

Support levels: 6,380 6,330 6,292

Resistance levels: 6,450 6,490 6,530


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