The Footsie posted losses yesterday alongside US’s weak corporate earnings reports and warnings of Eurozone’s weakening economic performance. Moreover, China’s economic downturn dampens sentiment amidst the ongoing trade war that has yet to see resolution. The day for the UK parliamentary vote on Brexit Plan B has arrived and investors will draw attention to the outcome that will leave an impact on market action and determine Britain’s economic course.
The FTSE index slid 0.9% cracking the recent uptrend as it broke below the support at 6800 to move to a lower support zone around 6730/6750 . Though the RSI reading is at the oversold threshold, downside momentum could drive the price to meet the support zone around 6680/6700 as it falls towards the lower Bollinger band. Should the price action fail to remain below 6730/6750, it could bounce towards the 50-period EMA to re-test resistance at 6845.
Support: 6700/ 6650
Resistance: 6800/ 6845