UK Stocks Are Uncertain After Prime Minister Resigns, Per the FTSE 100 Perspective

Oct 20, 2022
VOT Research Desk

Market Insights and Analytics

In light of the impending political and economic unrest, UK Prime Minister Liz Truss resigns.

Crucial levels of technical support and resistance are present for the FTSE 100.

While the healthcare sector struggles, real estate and energy equities lead gains.

UK Prime Minister Liz Truss Steps Down, Caution Is Exercised by the FTSE

UK equities rose initially on the departure of British prime minister Liz Truss before reaching a top of 7017.4 from earlier today’s low of 6894.85.

Bulls may still have the chance to advance higher if they can maintain a hold above the weekly open (6858.79), despite the pressure that political and economic uncertainty is putting on the pound and UK sentiment overall. The 7000 handle remains crucial, allowing for 7200 as the 200-week MA (moving average) adds an additional layer of resistance at about 6948.

The continued selling pressure and a break below 6858, however, could open the door for a negative extension further towards the October 2022 bottom at 6707.62, as sentiment is remains cautious about risk assets.

Energy surged by about 1.85%, real estate increased by about 2.56%, and healthcare suffered the most, losing about 1.46%, according to estimates

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