Stock prices in London are seen opening higher today following strong gains in the US and Japan overnight, while house-builder Crest Nicholson's chief financial officer stepped down as the company issued a profit warning. In addition, investors will be keeping watch over the European Council summit for potential developments over whether an exit deal can be struck by negotiators. European Council president Donald Tusk has warned that without new "concrete proposals" from the British to break the logjam over the so-called Irish border "backstop", further progress may be impossible. The economic events calendar today has Eurozone inflation readings at 1000 GMT. There are US housing starts figures at 1330 GMT.
Technically speaking, the FTSE does not show any clear trend in the medium or long term. However over the short term, the RSI looks bearish signaling strong overbought conditions and suggests a short term move to the downside. We might see some buying interest in early trading session as strong momentum from yesterday pushes the index slightly higher. However, on a 1H chart we are still trading below the 200-period SMA which will most probably be a good entry point for short sellers.
Support: 7070 6960
Resistance: 7186 7225