The FTSE index made a decline of 0.87% as the US-China trade conflict escalates and maintains markets’ risk-off mood. The US will impose tariffs today and China intends to respond with unspecified countermeasures while markets await the outcome of the ongoing trade talks between the two nations With the energy sector making up a good portion of London’s blue chip index, trade developments will continue to impact the FTSE index which is sensitive to the state of the global economy. Traders should focus on US-China headlines to impact market price action and global sentiment.
The FTSE ended at 7207 on Thursday as price found support at the 200-day MA around 7190/7200. A break above the trend line-resistance on the RSI should indicate whether the index could turn higher from this new low and edge towards the 7280 level followed by the 20-period MA around 7320 acting as dynamic resistance on the FTSE’s downtrend. Failure to surpass 7280 will leave the FTSE consolidating losses before breaking below 7190 to target lower levels at 7170 and 7150.
Support: 7190/ 7170
Resistance: 7280/ 7320