FTSE Tanks Despite Sunak's Blowout Bailout
Fiona Cincotta March 18, 2020 9:11 AM
Chancellor's £330 billion bailout doesn't appear to be enough
The bloodbath is resuming on Wednesday. After recording gains of 2.7% in the previous session, the FTSE is plunging lower in early trade as the Chancellor’s blowout bailout has failed to maintain any level of positivity in the markets.
Eyes are now turning to the European Stability Mechanism and what more the White House can bring to the table.
With fear driving the markets and coronavirus numbers escalating, there is a good chance that this overly bearish picture won’t show any signs of improvement until the coronavirus numbers themselves start to improve.
Levels to watch
The FTSE is trading down 3.9% at 5088 the time of writing. It trades below 50,100 and 200 sma on 4-hour chart, a bearish chart.
The price found support for a second straight session just shy of 5000. Immediate support is at 4996 (today’s low), prior to 4987 (yesterday’s low) before 4840 (16th March low).
Resistance can be seen at 5370 (yesterday’s high) A break above this level is needed to negate short term bearish trend. Resistance is then seen at 5700 (13th March high).
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