The FTSE 100 closed 0.20% higher on Friday at 6159 points, though the blue-chip index recorded a 1.85% decline over the last five trading sessions
FTSE 100 futures are trading sideways, suggesting that the blue-chip index faces a bumpy road to recovery as fears of a second wave of coronavirus cases begin to materialise.
The FTSE 100 closed 0.20% higher on Friday at 6159 points, though the blue-chip index recorded a 1.85% decline over the last five trading sessions with UK stocks recovery showing signs of slowing.
The FTSE 100 recovered from the lows of the session yesterday, but gains have stalled below 6250, creating a possible lower high, according to Chris Beauchamp, chief market analyst at IG.
A renewed move lower targets 6050 and then on to 5950, Beauchamp added. A move through 6350 would be needed to suggest the buyers are back in charge, and would open the way to 6500 and the highs from the middle of the month.
Despite the FTSE 100 closing the week in positive territory, UK equities gave up gains this week, with investors growing increasingly concerned about a second wave of Covid-19 cases in the US and Europe.
It appears that investors’ fears are materialising, with the White House Covid-19 task force holding an emergency briefing as US cases start to soar again, particularly in Texas, Florida and Arizona.
Thirty four states across the country, though, are experiencing a measure of stability that is a credit to all of the people of those states… but, nevertheless, there are 16 states with rising cases and rising percentages, US vice-president Mike Pence said.
We can still take some comfort in the fact that fatalities are declining all across the country, he added.
For the S&P 500, while the price rebounded from Thursday’s lows, gains have stalled around 3090, Beauchamp said.
A renewed move lower from the current lower high targets 3020 and then 2950, he added. If the price can move above 3100 then a more bullish view might prevail, but it would need to clear 3140 and trendline resistance from the 10 June highs to really suggest a fresh move higher is underway.
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