The Footsie rose 0.52% alongside major European indices as Chinese Manufacturing data improved risk on trading. In the UK, parliament’s second round of indicative votes proved once again to be ineffective, leaving a no-deal scenario increasingly likely as unanimity amongst UK law makers seems far-fetched. Brexit uncertainty continues to undermine confidence in global markets and may limit gains on the FTSE without further clarity. In today’s data front, UK publishes construction PMI data expected to remain in contraction territory.
The Footsie Index extended gains to reach the resistance at 7350 before ending at 7317 on Monday. Breaking through the resistance zone of 7350/7370 will determine whether bullish price action persists to target higher levels at 7400 and 7450. Alternately trading below support at 7290 will target 7260 from which the index could turn lower should price trade through that level.
Support: 7290/ 7260
Resistance: 7370/ 7450