FTSE Index gained 40 points on Friday as sentiment was buoyed by reported progress in US-China trade talks and weakness in the sterling. On the Brexit front, PM May’s deal failed to garner enough support from the parliament and a conclusion seems elusive even as the UK is set for another round of indicative votes today. Outside the UK, China’s manufacturing data showed expansion and should set a bullish tone for the Footsie despite Brexit uncertainties.
The Footsie index managed to overcome resistance at 7260 and traded 0.62% higher to close at 7279 on Friday. The RSI reading remains below the overbought territory and leaves room for price to build on Friday’s gains as it trades through the resistance at 7290 to target the 7350 level and 7370 high. However, failure to sustain price action above the support at 7290 would lead the index to test the 7260 level after which comes the 20-period MA around 7220.
Support: 7290/ 7260
Resistance: 7340/ 7370