The UK index is set to open higher on Friday, amid a weaker pound and despite a lower close on Wall Street and disappointing economic news from China. Futures indicate the FTSE 100 index to open 28.5 points higher at 7,056 today. The index closed down 0.4% on Thursday. Looking ahead, the UK corporate calendar has Q3 results from London Stock Exchange Group, InterContinental Hotels, Provident Financial and Acacia Mining which might impact trading today. The economic events calendar has UK public sector net borrowing at 0930 GMT.
Technically speaking, the FTSE is still trading inside a narrow range, unable to trade above the prior day's high or below the previous day's low forming a horizontal channel. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. We are also trading below the 200-period MA on an hourly chart which also suggests further decline ahead. Selling could accelerate should prices move below the close-by swing low at 6970 where further sell stops might get triggered.
Support: 6970 6925
Resistance: 7070 7185