The FTSE traded 0.44% lower on Wednesday as oil majors proved to be the biggest drag on the FTSE. Oil prices tumbled against a weaker demand outlook burdened by Sino-US trade tensions that have showed no signs of easing ahead of the two nations meeting later this month. On corporate news, British American Tobacco weighed on the FTSE as its shares fell sharply after a warning of declining global sales in cigarettes. Traders should monitor US-China trade headlines as markets await on the sidelines before further developments determine whether selling pressure will dominate the FTSE.
FTSE took a pause on its rally as it declined towards the support at 7335 before ending at 7367. Rejecting the resistance around 7400 while holding below the 7370 level alludes to further downside price action should support at 7335 fail to hold. Look for a decline below 7335 to target the support at 7310 , and a sustained move above 7370 to point to a retest of the high around 7420.