The FTSE ended barely changed and edged 5 points higher on Tuesday as a decline in the pound and rising oil majors helped keep the index afloat. Still, apprehension over the outcome of the G-20 summit leaves markets on edge as trade uncertainty keeps a lid on risk appetite while geopolitical tensions between the US and Iran weighs on sentiment. The FTSE should see gains limited by cautious sentiment as markets await further trade developments this weekend.
The FTSE managed to end at 7422 with a marginal gain of 5 points after dropping to the support at 7370. However, price continues to form a series of lower intraday highs and lows suggesting that further weakness is in store. We will look for a sustained move below 7400 to indicate selling pressure and a decline below 7370 to drive the FTSE towards the near-term support at 7320. Meanwhile a sustained move above 7430 would be required to bring about a re-test of the resistance at 7470.