The FTSE edged 0.17% higher on Monday led by gains on Wall Street. However, it is worthy to note that lower oil prices and a rising pound may curb further advances on the FTSE. Today’s Chinese PMI data showed the second largest economy is growing slower than its latest GDP figure suggested and may discourage market sentiment and keep the FTSE ranging with minimal movements. Moreover, economic data out of the Eurozone today may impact price action and lead the direction on European indices.
Since the FTSE’s decline towards the support at 7400 last week, the price failed to muster enough momentum to surpass the 7470 level in order to restore the bullish view and re-test the high at 7530. The FTSE is vulnerable to selling pressure below the 20-period MA with immediate support found at 7400. Look for the RSI reading to move and sustain above the 50 midline to indicate a potential move higher.
Support: 7400/ 7370
Resistance: 7470/ 7530