FTSE100 Still Good For Put Options As Bears Control the Market
Aug, 12th 06:18
The London benchmark, the FTSE 100, closed the day down 1.06% at 6,664.54, with mining-related shares sinking after China’s Central Bank decision that makes imports into China more expensive and therefore will limit further metal’s demand.
The biggest losers were Glencore, down 7.3% and BHP Billition, down 5% intraday. The index gapped lower at the opening, and extended its decline down to 6,651, and the technical picture is now supporting additional declines, as in the daily chart, the index is now below its 20 SMA, and well below the 200 SMA, the one that capped the upside for most of these last two weeks.
In the same chart, the Momentum indicator remains flat around 100, but the RSI indicator resumed its decline, heading now lower around 48. In the 4 hours chart, the Momentum indicator continues to head lower below its 100 level, although the RSI aims to correct higher around 44, limiting slides during the upcoming hours.
Nevertheless, risk is of another run south for this Wednesday, particularly on a break below 6,650, the immediate support.