FTSE 100 Talking Points:
- UK Prime Minister Liz Truss resigns as political and economic uncertainty looms.
- FTSE 100 faces critical levels of technical support and resistance.
- Real-estate and energy stocks lead gains while the health-care sector strains.
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UK Prime Minister Liz Truss Resigns – FTSE Reacts Cautiously
After reaching a daily low of 6894.85 earlier today, the resignation of British prime minister Liz Truss initially drove UK stocks higher before peaking at 7017.4.
With economic and political uncertainty pressuring both GBP and UK sentiment as a whole, a hold above the weekly open (6858.79) may still provide bulls the opportunity to move higher. As the 200-week MA (moving average) forms an additional layer of resistance at around 6948, the 7000 handle remains key, opening the door for 7200.
FTSE 100 Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
However, with sentiment still shying away from risk assets, further selling pressure and a move below 6858 could pave the way for bearish continuation back towards the October 2022 low at 6707.62.
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FTSE 100 Daily Chart
Chart prepared by Tammy Da Costa using TradingView
FTSE 100 Biggest Movers
With real-estate gaining approximately 2.56%, the energy sector rose by approximately 1.85% while the health care took the biggest knock with an approximate loss of 1.46% (at the time of writing).
Refinitiv
FTSE 100 Client Sentiment
| Change in | Longs | Shorts | OI |
| Daily | 3% | 0% | 2% |
| Weekly | -9% | 37% | 3% |
FTSE 100: At the time of writing, retail trader data shows 64.90% of traders are net-long with the ratio of traders long to short at 1.85 to 1.The number of traders net-long is 3.10% lower than yesterday and 12.72% lower from last week, while the number of traders net-short is 8.90% higher than yesterday and 11.25% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests FTSE 100 prices may continue to fall.
Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current FTSE 100 price trend may soon reverse higher despite the fact traders remain net-long.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
