5983 Remains Key Support For FTSE100

The London share market lost 2.44% or 147 points and closed the day at 6,042.92, erasing all of its Thursday gains, achieved after ECB’s President, Mario Draghi, hinted that the ongoing stimulus plans in Europe can be expanded.

In the FTSE 100, the decline was led by mining-related shares, as almost all metals prices fell. Anglo American lost 7.8%, Glencore closed down 6.3% and Antofagasta lost 5.4%.

The index however, managed to hold above the 6,000 figure, although it may not last longer: the daily chart shows that the technical indicators head sharply lower near oversold levels, whilst the index moved further below its moving averages.

Shorter term, the 4 hours chart shows that it broke back below a now bearish 20 SMA, albeit the technical indicators have lost their bearish strength, and aim higher below their mid-lines.

The immediate support comes at 5,983, last week low, with a break below it probably fueling the side on Monday.

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