The Footsie index closed 0.3% lower at 6918 last Friday and may follow suit today at the back of China’s weak trade figures. With the European economy weakening and Brexit vote approaching, Britain’s economy is under pressure as deteriorating business confidence is likely to weigh on the Footsie. Meanwhile, investors draw attention to PM Theresa May seeking to rule out the prospect of a second delay and no deal ahead of tomorrow’s parliamentary vote.
The Footsie Index forms a shooting star candlestick suggesting a reversal on the upside move and indicating price has topped at 7000 . Moreover, Price action sits below the descending 200-period EMA that may curb advances above resistance at 6980. Failure to break above this resistance could see support at 6850 retested.
Support: 6880/ 6720
Resistance: 6940/ 7000