Weak Chinese growth data stalled the recent rally in global equities and resulted in a laggard session for the FTSE 100 which closed virtually flat at 6970.5. Growing signs of economic weakness in China weighs on investors’ sentiment and leaves the Sino-US trade developments the highlight of global concerns. Another concern lies in the prospect of a no-deal Brexit, as UK lawmakers face a divisive parliament that have yet to vote on a deal presented by PM Theresa May. With worrying factors in the picture, traders can look to today’s Eurozone ZEW report to impact the FTSE’s price action.
The FTSE index is ranging below the resistance zone of 6890/7000 and struggles to extend its upside move towards the 200-day MA at 7060. While a break below the support zone of 6890/6900 could push the price action towards the lower Bollinger band, the index has yet to confirm buying pressure in breaching resistance level of 7000.
Support: 6890/ 6790
Resistance: 7000/ 7120