As the FTSE surged alongside higher oil prices, a decline in the energy sector led the Index 0.68% lower on Wednesday. Sterling weakness stemming from Brexit uncertainty may aid a lift in the FTSE following yesterday’s retreat while price action in Asian markets may lead further direction.
Following the breakout of resistance zone around 7470/7480, the FTSE surged to 7530 before retreating lower to end at 7471 as price exited the overbought territory on the RSI. The RSI reading has now entered negative territory as it sits below the mid-line, however the bullish trend remains intact so long as price holds above 7390. A move above 7470 would be needed to indicate the presence of buying pressure and take the index back up towards higher levels.
Support: 7400/ 7380
Resistance: 7470/ 7530