The FTSE index failed to make directional moves on Friday as it ended 0.08% lower at 7428 weighed by discouraging earnings reports out of the UK. Moreover, a tumble in oil prices due to President Trump’s call to increase supply failed to offer support to the energy sector on London’s blue-chip index and may weigh on price should there be further declines. Today, BOE Governor Carney is scheduled to speak, to which markets will look for clues on future monetary policy.
The Footsie Index remains supported by the 20-day MA around 7400 however under pressure as it failed to sustain above the trend line resistance from all-time highs. Should price sustain above the 7400 level, there is potential for a rebound towards the high at 7530 with a break above the 7470 level. Alternately a decline below the 7400 level would target the lower support at 7380.
Support: 7400/ 7370
Resistance: 7470/ 7530