FTSE drifting lower, testing 21-D SMA below pivot point

The UK's top flight index, the FTSE 100, closed down 24 points or by 0.4% to close at 6,818.95.
Investors were focused on the ECB in the absence of fresh Brexit developments or Sino/US trade talks.

Ross J Burland FXStreet

The UK share markets were marking a fresh low on the open and in consolidation in the main following a series of down days since peaking at the start of the week. The focus on Thursday, however, in the absence of fresh Bexit or international trade news was with the European Central Bank that, as widely expected, stood pat on monetary policy.

However, the takeaway was that the President, Mario Draghi, is cautious about risks to the downside due to Brexit and international trade, likely taking heed of the IMF's second downgrades to global growth and a contraction in European mainland data components.

Best and worst

As for corporate news, Vodafone was the worst performer ahead of its first-quarter trading update. The South African business, Vodacom, has reported a slowdown in service revenue.Vodafone Group (VOD) ended at 144.02p -3.50%, followed by Reckitt Benckiser Group (RB.) 5,593.00p -3.30% and British American Tobacco (BATS) 2,425.00p -2.30% as the three worst performers. The three top performers were Centrica (CNA) 134.40p 2.48%, St James's Place (STJ) 962.00p 2.19% and then Evraz (EVR) 465.00p 2.09%.

FTSE levels

Support levels: 6793 6757 6705
Resistance levels: 6881 6933 6968

The latest price action has sunk the price below the pivot point although has been consolidative in the main. However, the price has been opening a test of the 21-D SMA after breaking below the 50-D SMA and the 23.6% retracement Fibo of the late May 2018 decline targeting 6797 fractal 16th Jan swing low. However, there is a series of supportive lows around this Fibo and a declining S1 located at 6793

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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