The FTSE suffered its worst week in 7 months by losing 103 points and closing at 7314.4, on concerns of rising U.S bond yields which spilled over to the European markets; main and crossover CDS spreads widened, amidst increasing concerns of Italy's ability and willingness to meet EU fiscal rules. Positive developments in Brexit talks pushed the pound higher adding pressure on the export-dominated index. In economic news, Halifax House Price index released on Friday came out worse than expected at 2.5% vs. forecast of 3.3%.
The FTSE tested and breached our support levels one after the other on Friday, portraying strong bearish momentum as the market trades at the lower band of the Bollinger bands, with the death cross confirmed on the 1H chart awaiting further confirmation on the 4H and daily chart. Further bearish momentum is expected if 7323.5 resistance level holds, and price confirms bearish candlestick formation on the 1H chart.
Support: 7279.1 7234.9 7195.5
Resistance: 7323.5 7386.9 7445