FTSE 100 BEARISH AFTER ON PRODUCTION DATA
FTSE 100 is currently trading at 7266- lower by 0.26% from the last closing. The index has been continuously losing momentum since the last four trading sessions. Further back, it has closed in the negative, in 8 out of the past 9 trading sessions. The only exception was Monday when it closed in positive territory (0.51%) due to the Labor Day holiday in the US when trading volumes were very thin.
Among the top losers in the FTSE 100, Fresnillo fell by 2.71%, Glencore fell by 1.88% and Pearson fell by 1.20%.
On the economic front, UK Industrial Production (MoM) for the month of July released earlier on Monday came in at 0.1%- below the expectations of 0.2%. In June, Industrial Production rose by 0.4%. The UK Manufacturing Production data (MoM) for July, which was also released on Monday, fell by 0.2% while markets expected an increase of 0.2%.
On the technical front, the RSI is currently at 28.99% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the lower band of the Bollinger Bands and is heading downwards. The %K has crossed the %D from above to the downside at 25.39 and suggests that the market may head downwards. So, overall the market setup seems to be negative.
Trade Suggestion-Limit Sell at 7305. Take Profit at 7255. Stop Loss at 7330.