Stocks in London are seen opening in the red on Monday tracking Asian markets lower as investors fretted about trade tariffs and the plunging Turkish lira. The Turkish lira hit a fresh record low early Monday after closing down as much as 16% on Friday as US President Donald Trump doubled steel and aluminium tariffs on Turkey, raising concerns the country may plunge into a financial crisis. In UK corporate events today, half-year results are due from shipping firm Clarkson.
From a technical perspective, the UK index is still trading inside the wide range between 7577 and 7785. The index has been stuck in this range since early May 2018 with occasional failed attempts at breaking. Short-term traders should focus on the RSI. This indicator has so far been a clear indicator of direction. It is now is oversold territory suggesting a bullish move from the S1 support level at 7638.
Support: 7638 7577
Resistance: 7700 7785