The FTSE traded 0.80% lower on Thursday as a combination of US-China trade concerns and weak Chinese industrial data taint the global economic outlook. In terms of data, UK retail sales figures came in lower than expected and raise concerns over a slowing British economy. Today, markets should continue monitoring trade headlines as they remain the strongest driving force for price action.
The FTSE continued to drift lower since reaching the resistance zone of 7390/7400 on Tuesday as it declined by 58 points to close at 7292 on Thursday. The index has been showing signs of weakness as it drifts lower and fails to trade above the 20-period MA. A sustained move below 7300 would indicate selling pressure and target the 7260 level separating the index from a bearish phase. On the other hand a sustained move above the 7350 level near the 20-period MA would be required to target the 7400 resistance level. Above 7400, the bullish outlook would be restored.
Resistance: 7350 /7400