When we take a look on 2020 chart of FTSE 100 Index, we will find a sharp fall in the first quarter of the year (due Coronavirus pandemic (COVID – 19)), and remarkable recovery in the second quarter, and sideways trading range since the beginning of the third-quarter till now.
With focusing on the third quarter, we will find FTSE 100 Index trades in a volatile sideways range between 6,313.00 (Resistance), and 5,989.00 (Support) levels.
Allddon.com experts thinking the FTSE 100 sideway rang in the third quarter returns to two things, the first thing is the Crude Oil prices recovery, which supports the index, and the second thing is the bad Economy situation of the United Kingdom, which obstructs the index progress to higher levels.
- The current resistance level of FTSE 100 Index is 6,313.00.
- The current support level of FTSE 100 Index is 5,989.00.
- If the index breaks the support level, this will lead the index to tests lower support levels.
- The Index trading range will be aside as long as it is above the support level.
- If the Index breaks through the resistance level and the bearish trend line, this will be a positive thing technically, where we expect the Index to test higher resistance levels.
- As known, the United Kingdom economy has suffered a lot since the Brexit poll in 2016, and the hard Brexit in 2019, with the United Kingdom leaving the European Union with no deal.
- In 2020, Coronavirus (COVID – 19) crisis has deepened the wounds of the United Kingdom economy, when the economic output shrank by 20.4% in the second quarter of this year, which is worst quarterly slump on record, pushing the country in the deepest recession than any other major global economy.
- About 730,000 jobs have been lost since the beginning of Coronavirus pandemic.
- The Relaxation of lockdown restrictions in last June has an immediate positive effect on the GDP rate of July, by increasing it with %8.7.