The FTSE closed at 6880.19, rising 73 points higher, a little below the last sessions high of 6902.19 following the relief that came with PM Theresa May surviving the no confidence vote and retaining her leadership for another year . The news withdrew fears of turmoil within the country’s politics, however hasn’t clarified any further developments over the Brexit landscape. Traders should be on the lookout for Brexit-related updates, as Theresa May will attend today’s European Council meeting, and global trade developments advances to drive the Index.
Bulls are challenged to extend their advantage as the Footsie continues to rally. The index should break above the 100MA at 6923 and hold above the 20MA to follow through its uptrend. On the other hand, the stochastic oscillator shows a hidden bearish divergence as the index makes a lower high but the stochastic forms a higher high, indicating an underlying weakness and a possible sign of reversal to fall on a support around 6752.
Support: 6720/ 6659
Resistance: 6958 / 7002