Tuesday, October 22, 2019

FTSE100

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Fundamental Highlights

The FTSE traded 0.18% higher on Monday as US-China trade hopes were boosted by positive comments from President Trump and overshadowed the persisting uncertainty over Brexit. Nonetheless there is a glimmer of hope in the UK as the UK parliament deterred a vote on PM Johnson’s agreed deal with the EU and requested an extension to the October 31st deadline. The move, while prolonging the Brexit deadlock, suggests that a no-deal scenario would be averted. There are no major economic releases to influence direction on the FTSE today which will leave influence on sentiment to trade and Brexit developments .

Technical Analysis

The FTSE gained 13 points to end at 7163 on Monday. The index briefly dropped below the support at 7150 before turning higher yet remaining directionless. Look to the 20-period MA near 7190 to act as dynamic resistance on the FTSE and guard the higher level at 7220. Failure to trade above 7190 would maintain the apparent downtrend since mid-October and leave price ranging with a break below 7150 required to target the lower support at 7130 and 7100.

Support: 7130/7100
Resistance: 7190 /7220
FTSE100