Thursday, August 9, 2018

FTSE 100 - 10 August 2018


Fundamental Highlights

Share prices in London are set to open lower on Friday, with focus on the latest UK GDP reading due later in the morning. The FTSE 100 index of large-caps is set to open 25 points lower at 7,715 on Friday. The index closed down 0.5%, or 35 points, at 7,741 on Thursday. Looking at the bigger picture, UK economic growth is still way below the gains we were used to and this is due to fears of a 'no-deal' Brexit mounting, following UK international trade secretary Liam Fox putting the chance of a 'no-deal' scenario at "60-40" and Bank of England Governor Mark Carney last week warning the chance of such a situation is "uncomfortably high".

Technical Analysis

From a technical perspective, the UK index is still trading around the upper end of the range however is expected to drop slightly back towards the 7700 and beyond. The RSI is still looking bearish signaling more downwards pressure, however on a 4-hour chart we are trading above the 200 period moving average which should provide some support around 7630 to 7650 zone.

Support: 7638 7577
Resistance: 7700 7785

Chart (H4)