The FTSE traded slightly lower by 0.05% on Friday. Data out of China provided some support as its trade surplus has widened which also highlighted the trade imbalance with the US with a deficit in imports. Moreover, the pound is gaining ground and limiting the upside on the FTSE. Today, China published better than expected retail sales and industrial production data while its GDP slowed to 6.2%. With no major economic releases out of the UK today, we can expect China’s data to set the tone for the day and influence direction.
The FTSE ended with a 3 point loss at 7505 on Friday. The price found support at 7490 and has yet to trade below this level to target 7470 followed by 7450 . Look for a sustained move below 7520 to maintain selling pressure and extend the FTSE’s declines. Meanwhile the 20-period MA at 7540 should act as dynamic resistance and determine whether the FTSE can re-test the resistance of 7570. Look for a sustained move below 7520 to maintain selling pressure and extend the FTSE’s declines.