FTSE stuck at 100-DMA even though miners rebound

FXStreet (Mumbai) – The London’s Ftse index recovered losses, but the bid tone is not strong enough to take the index above its 50-DMA at 6800 even though mining stocks recovered losses.

Miners rebound

The Ftse mining index now trades 0.25%, as most of the shares erased losses to trade positive. UK shares slipped early on Tuesday as a rebound for gold miners after a hammering in the previous session failed to negate a fairly mixed set of corporate results and falling prices of other commodities.

Among the index stocks, gold miners Fresnillo and Randgold gained 1% to 2.5%. Gold prices on Tuesday stabilised just above a five-year low, though some investors still see further price falls. Meanwhile, the losers include names like Centrica, EasyJet, Ashtead Group, and Barratt Development.

The index currently trades largely unchanged on the day at 6793.80.

FTSE Technical Levels

The immediate resistance is seen at 6800 (50-DMA) and 6807 (May 7 low), followed by another resistance at 6840. On the other hand, support is seen at 6767 (5-DMA) and 6753 (200-DMA).

The London’s Ftse index recovered losses, but the bid tone is not strong enough to take the index above its 50-DMA at 6800 even though mining stocks recovered losses.

(Market News Provided by FXstreet)