Will 3-week support hold up?

The FTSE100 is offside by 50pts, a net 12pt decline once you factor in it being a big day for companies going ex-dividend, accounting for 38pts.

Will 3-week support hold up?

The FTSE100 is offside by 50pts, a net 12pt decline once you factor in it being a big day for companies going ex-dividend, accounting for 38pts. Several miners are helping limit the decline thanks to a Copper price breakout and solid China inflation. GBP bounce vs USD, off a falling channel floor, may be adding to the ex-dividend negativity, although Oil off its lows is offsetting this, with BP and RDSB no worse off than their 1.4% dividends. Note AZN & FRES shares positive even after adjusting for dividends.

Contributors: FTSE -50pts, thanks to GSK/BP/RDSB/DGE/BT/RIO/BARC (ex-dividends), BATS/RB/CRH (GBP off lows), TUI (results, warm weather), VOD/WPP (profit-taking) and SHP (Takeda shares lower overnight, GBP off lows). Helping keep the index net breakeven after all those ex-dividends are GLEN/BLT/ANTO/AAL (Copper, China inflation) and AZN/CPG (momentum).

Technicals: The FTSE100 is back testing 7720 overnight lows. Will 3-week intersecting support at 7715 holds up?

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Categories: Analysis, News, Shares
Tags: FTSE 100

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