The FTSE 100 closed 23 points higher yesterday at 7296.9 with miners, and tobacco firms leading the way. Miners benefited from gold surging above 1200, as a result of the U.S proposing a new round of trade talks (in the next few weeks) one day after China's retaliatory move at the WTO. British American Tobacco (LON:BATS) and Imperial Brands (LON:IMB) were up 6% and 3.18% respectively, as US FDA threatened to ban vapor e-cigarettes. Oil stocks also pushed the FTSE higher as Brent climbed above $80 a barrel for the first time since May. In economic news, the BOE interest rate decision is coming up today at 11:00 GMT (market expecting no change in rates), along with a cabinet meeting - held by PM May - to discuss no-deal Brexit plans.
FTSE is still trading in a consolidation range (between our set support and resistance levels) after testing our resistance level at 7305.6 many times, awaiting further prints to confirm if our resistance is used as a support by the market. RSI divergence pattern on 4H timeframe is in favor of a bullish move with a target set at 7,359.4. Failure of pattern upon 4H candle close below 7298.1.
Support: 7268.4 7224.1
Resistance: 7305.6 7335.9