FTSE halts its decline near previous lows

The FTSE index declined 1% on Thursday, but managed to recover slightly ahead of the US session as other indices were seen rising again.

The index is trying to defend the area of previous lows and this could be a major support for the near term.

The first level to watch is near 6,120 GBP and if this level is taken out, further decline toward 6,090 GBP could occur. The Footsie needs to remain above these level in order for the medium-term outlook to stay bullish.

Should the price decline below these supports, we could see a larger drop to the psychological level of 6,000 GBP.

Alternatively, the index needs to climb above 6,160 GBP for the short-term outlook to improve back to bullish, with another resistance spotted near 6,200 GBP.

Equities are trying to rise despite worsening COVID situation as investors are hoping for more fiscal and monetary stimulus.