Friday, September 27, 2019

FTSE100

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Fundamental Highlights

The FTSE traded 0.44% on Thursday as positive trade comments from President Trump from the previous day provided support. However, trade optimism is likely to fade with the lack of fundamental US-China trade progress and turn market attention to geopolitical risks related to Brexit and talk of impeachment against President Trump. Today, there are no major economic releases out of the UK unlike the US which will later publish personal spending and durable goods orders data which may influence direction on the FTSE. Apart from the data, trade headlines and geopolitical developments will remain the key driver of price action and determinant of market sentiment.

Technical Analysis

The FTSE traded higher on Thursday as it posted a gain of 61 points to end at 7351. The price surged above the resistance at 7290 to reach an intraday high of 7387. Today, look for a sustained move above 7350 to maintain buying pressure with a break above 7380 required to target the higher levels at 7400 and 7420. The RSI reading shows a bearish divergence signaling a reversal as it forms a lower high while price has formed a higher high. Failure to hold above 7350 would confirm this divergence and lead the FTSE below the 20-period MA to meet the lower support levels at 7290, 7265 and the 100-period MA.

Support: 7290/7265
Resistance: 7387/7420

Chart (H4)
USDJPY