The FTSE traded slightly higher on Wednesday as it rose 0.15% to close at 7270. In the UK, Lack of progress in Brexit developments weighed on the pound and enabled gains on the FTSE. Meanwhile, the US-China trade dispute limits the upside moves as traders are uncertain of what lies ahead given that the two nations intend to raise tariff rates in the face of no trade deal. Markets will await and rely on the outcome of trade negotiations set to resume today to determine market sentiment and drive price action on the FTSE.
The FTSE managed to hold above its newly-found support zone at 7230/7240 on Wednesday as it drifted slightly higher to close at 7270. The downtrend remains intact as price is currently pointing lower with the next target of support coinciding with the 200-day MA around 7190/7200. Bearish momentum and a trend line resistance on the RSI leaves room for further declines towards 7200 before price turns higher alongside an exit of the RSI reading from the oversold territory. A move above 7270 targets the 20-period MA around 7340 acting as dynamic resistance on the Footsie’s downtrend.
Support: 7230/ 7190
Resistance: 7270/ 7340