FTSE 100 Technical Analysis: Index Breaches Key Support Levels as Volatility Persists

The FTSE 100 Index recorded a decline of 135 points, or 1.3 percent, on Thursday to close at 9,961 points, following a session of broad selling pressure led by 3i, which fell 17.7 percent, alongside Antofagasta and Fresnillo, which decreased by 6.5 percent and 5.3 percent, respectively.

The drop continues the recent shift in the blue-chip benchmark’s performance.

From a technical perspective, the index has entered a correction phase after hitting an all-time high of around 10,910 on February 27. The peak marked the end of a robust uptrend that had been in place since early last year.

However, the onset of the Iran war has resulted in a sharp reversal, pulling the index back through the 9,972 level and down approximately 8% in the last month.

After bouncing from a key support level at 9,894, following suggestions that the Iran war was nearing its end, the index declined once again on Thursday, as the downtrend looks to continue. Pressure and a break of that key level could see sellers rush back in.

Sector-specific headwinds are currently dominating the narrative. The financial sector faced a heavy blow from 3i’s sharp decline, while the mining sector struggled as Antofagasta and Fresnillo reacted to a decline in precious metals prices on Thursday, with gold and silver continuing to sell off.

While energy stocks often provide a hedge during geopolitical conflict, they were unable to offset the drops seen in mining and financials.

The index now faces a critical battle to reclaim the 10,000 mark. Traders are monitoring whether this pullback is a temporary consolidation or the beginning of a deeper retracement toward early 2025 support zones.