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Last week the export-oriented FTSE 100 concluded its third consecutive week in the red. This three-week downward trend represents the longest period of weekly declines for the index in the past seven months. As we reach the midpoint of May, defensive sectors like utilities and healthcare have emerged as the top gainers among FTSE firms. Conversely, cyclical sectors such as commodity-linked stocks have experienced the most significant declines during this period.

As the new trading week commences the FTSE is rotating around the flatline for the session as 3i Group sits at the top of the index up over 3.1%, shareholders of 3i Group applauded the companies annual financial results. The reported revenues of UK£4.7 billion were in line with expectations, while the statutory earnings per share (EPS) showed significant improvement. Surpassing analyst predictions by 15%, the EPS reached UK£4.74.

In a further blow to Ocado, after last weeks that hedge funds are circling the embattled online retailer as they look to short the shares son the basis that gains seen during the pandemic are set to reverse, JPMorgan added the stock to its underweight rating thai morning leading to additional pressure which once again sees the first sitting at the bottom of the index nursing losses of just over 2.4% on the session, once again the Ocado decline has weighed on Tesco as investors reprice the value of its online offering as the shares trade just shy of down 1% today.

FTSE Bias: Intraday Bullish Above Bearish below 7700

• Below 7700 opens 7660
• Primary supportis 7635
• Primary objective 8030
• 20 Day VWAP bearish, 5 Day VWAP bullish

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(Click on image to enlarge)

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