Indices News:- FTSE 100 hits three-week high as oil stocks soar; Cineworld plummets
04 Apr 2023
UK factory activity slows in March
Cineworld slumps on scrapping major sale plan
Airlines slide on higher oil prices
NCC Group down on brokerage PT cuts
FTSE 100 up 0.5%
Britain’s commodity-heavy FTSE 100 ended at a three-week high on Monday, lifted by oil majors as crude prices rallied, while Cineworld Group hit a fresh record low after the cinema chain operator scrapped a major sale plan.
“The FTSE 100 is leading the charge among European markets, with Shell and BP at the top of the index”, after the unexpected move by OPEC+ to boost oil prices, said Victoria Scholar, head of investment at interactive investor.
Lenders (. FTNMX301010), up 1.2%, also lifted the blue-chip FTSE 100.
Cineworld Group Plc (CINE.L) plunged 32.5% after hitting a record low earlier in the session, as the cinema operator said it has terminated the sale process for its U.S., UK and Ireland businesses.
While both the FTSE indexes started 2023 stronger on hopes that the global economy would avoid a recession this year, with the FTSE 100 even reaching record highs, the optimism was put to the test in March following a global banking sector turmoil.
NCC Group Plc (NCCG.L) dropped 7.9% after a string of brokerages cut their price-target levels on the IT services and consulting firm.
Higher oil prices hurt airlines’ stocks including Wizz Air Holdings Plc (WIZZ.L) and EasyJet Plc (EZJ.L), which shed 4.8% and 1.2%, respectively.
British manufacturers slipped deeper into decline in March but turned more optimistic about the future as cost pressures and supply chain problems eased off, a survey showed on Monday.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Immediate resistance is at 7720.8 & its immediate support level is 7655.4
HOW TO TRADE FTSE 100 IN THIS WEEK
The FTSE 100 is at present moving upward in a channel; it has broken its previous day’s high and is maintaining above the zone of support. We might see more gains as long as it remains above the support zone.