FTSE100 is set to open higher on Wednesday, following a sharp decline on Tuesday, which saw the blue chip index fall to a seven-month low. Today's highlight is the meeting between UK Prime Minister Theresa May and the Tory MPs, who are concerned about her Brexit plans following the leaked Cabinet papers obtained by The Times indicating that the transition period during which the UK will remain tied to Brussels could turn into a "long-running" arrangement lasting years. The UK corporate calendar today has third-quarter results from Barclays and Metro Bank and third-quarter. The economic events calendar has UK mortgage approvals figures at 0930 GMT.
FTSE100 has been stuck in a narrow range for the past 2 weeks. The index briefly broke below key technical support at 6960 yesterday however rallied rapidly closing at higher lows. The strong momentum during the end of the trading session yesterday matched a bullish hammer followed by a long green candlestick pattern. This upward momentum might continue on today to test the resistance are between 7070 and 7114. Alternatively, with prices trading close to this year's low at 6867, downside momentum might accelerate should FTSE 100 break out below the 6960 support.
Support: 6960 6925
Resistance: 7070 7114