The FTSE 100 closed in the green yesterday with heavyweight oil majors Royal Dutch Shell (RDSA.L) and BP (BP.L) accounting for most of the daily gain, as crude prices surged to 4-year highs with Saudi Arabia and Russia declining to raise production amidst looming U.S sanctions on Iran. Miners were also among the gainers; Glencore shares rose 3.5% on the back of launching a $1 billion share buyback and a positive outlook from Morgan Stanley. Clothing retailer Next (NXT.L) headed the top 10 gainers after raising its profit forecast and offered full details for how it is has prepared for a "no-deal" Brexit. In Brexit news, German Chancellor Angela Merkel said that a Brexit agreement between the European Union and the U.K. is possible in October, but it is not yet clear what the British government wants. In economic news, German Mortgage Approvals data is to be released at 08:30 GMT and the CBI Distributive Trades Survey at 10:00 GMT.
Along with the double top formation, divergence between the price and the RSI has formed on the hourly time frame and will be confirmed by a close below 7478.1, having a price target of 7448.5. If price hits that target in the coming two hours, then the 4H chart will form a bearish reversal bar pushing prices even lower.
Support: 7441.4 7419.6
Resistance: 7502.2 7528.1 7551.4