The FTSE traded 1.10% higher on Friday as it took direction from Wall Street which rallied on a mixed US jobs report. Today, there are no major economic releases to influence direction on the FTSE and influence will be left to Brexit updates and trade headlines. Expect market sentiment to remain cautious as US-China trade negotiations are scheduled to resume this week while Brexit negotiations with EU officials continue. Market participants should bear in mind last week’s dire global economic data which should leave risk appetite subdued unless we see positive geopolitical headlines.
The FTSE managed to rebound by 77 points to end at 7155 on Friday since reaching the support at 7000 from the previous session. Today, look for a trade and sustained move above 7155 to indicate buying pressure and target the higher resistance at 7190 followed by the 200-day MA at 7240. Failure to hold above 7155 will leave price ranging lower with a sustained move below 7120 required to indicate selling pressure and target the lower support levels at 7080, 7040 and 7000. Below 7000, we would see the FTSE reach 6970 and 6910.