FTSE 100 analysis: Can it snap a 7-day losing streak?

The FTSE 100 has fallen for seven consecutive sessions, marking its longest losing streak since mid-2019. The index is trying to end that rout today.

RS Group is the biggest gainer this morning, up over 3% at 726.80p after being upgraded to Outperform by BNPP Exane, which signalled there is significant upside potential with its target price of 965p.

Anglo American, Rio Tinto and Glencore are all up over 1% today, with Asian markets having found some support on hopes that the Chinese government is making more significant interventions to revive the economy.

That is allowing them to shrug off results out from Australian giant BHP Group, which posted a sharper drop in earnings than anticipated in the recently-ended financial year as commodity prices weakened, resulting in its dividend being cut by more than half. CEO Mike Henry said the situation in China, a major buyer of commodities, was “a bit uncertain” and admitted that the government’s efforts to stimulate the economy was “not translating as effectively into changes on the ground as certainly we were anticipating” while speaking on Bloomberg TV.

FTSE 100 analysis: Winners and losers

Below is a table outlining the biggest movers in the FTSE 100 in early trade today:

Winners	%	Losers	%
RS Group	3.4%	Pershing Square	-0.5%
Anglo American	1.7%	AB Foods	-0.4%
Fresnillo	1.7%	Unilever	-0.4%
CRH	1.7%	F&C Investment Trust	-0.4%
Glencore	1.5%	BP	-0.3%
Rolls Royce	1.5%	Phoenix Group	-0.3%
Antofagasta	1.5%	Haleon	-0.3%
Kingfisher	1.5%	Rentokil	-0.3%
Centrica	1.4%	Ocado	-0.2%
Endeavour Mining	1.3%	Shell	-0.2%

FTSE 100 outlook: Where next?

The FTSE 100 has been setting a series of lower-highs since peaking in February, but has found a reliable support at 7,257 to 7,206. Buyers have returned to the market the last eight times it has reached this level and that is proving true again today. The fact the RSI also slipped into oversold territory at this level in March, July and this week also reinforces the idea that this is as low as sellers can push the index for now.

We have seen the index rally every time it has rebound from these levels over the past eight months, although it is no longer able to set higher-highs as the falling trendline that can be traced back to February continues to provide resistance. This signals that sellers are returning to the market earlier and buyers are losing steam early each time. We could see the index return back to the trendline if this pattern continues. The pinbar we saw yesterday showed buyers experienced a strong rejection when they tried to push the price higher, so it will be interesting to see if they can make more progress today or whether sellers will keep the upper hand.

On the downside, a close below 7,257 would mark a new lower-low. Any slip below 7,200 could signal the start of a sharper reversal.

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.