Stocks in London are seen opening marginally higher on Monday following a strong close on Friday. US-China trade negotiations continued to uplift sentiment with news that progress is being made and talks are set to resume this week in hopes of resolving the protracted trade dispute. On a domestic note, UK Retail sales data came in better than expected however the indefinite course of Brexit remains a burden on global growth while investors’ sentiment continuously alternates on trade headlines.
The Footsie index broke through Novembers’ high around 7200 to confirm positive territory. Sustaining bullish momentum and the RSI support line will keep price above the 7190 level with the index’s next target resistance coinciding with the 200-day MA at 7300. The uptrend remains intact so long as price holds above the support at 7070.
Support: 7150/ 7070
Resistance: 7290/ 7370