British Stock Market May Plunge As Low As 5929


The FTSE 100 lost 0.54% and closed the day at 6,084.59, with the decline led by strong losses in the usual suspects, the miners Glencore and Antofagasta, and supermarket group Morrison.

The first lost over 4.4% on fears of lower demand coming from China, whilst Antofagasta closed 2-47% down after a downgrade from buy to hold.

The negative mood among investors did not help, and the daily chart for the index shows that an early advance failed around a still bearish 20 SMA, whilst the RSI  indicator extended its decline and now heads south around 40.

In shorter term, the downside is also favored, with the index having extended below its 20 SMA, now a few points above a Fibonacci resistance, whilst the technical indicators are aiming slightly higher below their mid-lines, unable to set a clear directional strength.

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