The FTSE 100 posted sharp gains of 1.6% aided by a rally in oil, that boosted the index’s commodity sector, and Fed’s dovish stance. While the UK is at relief after ruling out the prospect of a no-deal Brexit, its progress remains uncertain. In addition, China’s upbeat PMI data may be overshadowed by the uncertainty surrounding US-China trade negotiations that continue to be the highlight for global markets and a strong determinant for investors’ sentiment.
The FTSE successfully bounced off support at 6750, broke through the 20-period MA and rallied towards the resistance at 7000, a break above which will determine the bullish sentiment and drive the index to higher levels at 7075. However,a failure to break the 7000 level should keep the index ranging above the support at 6850 keeping the bullish bias intact.
Support: 6900/ 6850
Resistance: 7075/ 7140