The FTSE closed the month 0.39% higher, supported by upbeat corporate data from the index’s components. On a political note, given the requested amendments to the Brexit deal by the UK parliament, a chance of delay is likely as PM Theresa May faces the challenge of renegotiating the terms of withdrawal with the EU. Furthermore, US-China trade talks ended yesterday without a deal however the two nations will meet again in order to reach compromises. Considering the lack of negative headlines and a general outlook on crucial issues, there is room for hopeful investors to maintain positive price action despite the ongoing uncertainty.
The FTSE is currently sitting below the psychological resistance at 7000, and struggles to break through it for further upside move. The RSI reading is at 64, leaving room for price action to push past the 7000 level before reaching an overbought threshold. Failure to do so, will keep the index ranging below the level and above the 20-period MA. Alternately, a trade through support at 6850 will push price towards lower levels.
Support: 6900/ 6850
Resistance: 7075/ 7140