European markets rallied across the board on Wednesday amid stronger-than-anticipated earnings news and on expectations that a Brexit deal is just weeks away. The UK index rose after Brexit Secretary Dominic Raab indicated he expected an EU withdrawal deal finalized by November 21, setting off a flurry of speculation. Today, the FTSE 100 index is seen opening 40 points lower hindered by a stronger pound, while Royal Dutch Shell enjoyed a strong Q3 as earnings rose on the back of higher oil prices. The economic events calendar today has UK manufacturing PMI at 0930 GMT.
The FTSE was dominated by bulls yesterday pushing the market up throughout the whole session, and moving higher for the 3rd day in a row. However, the UK blue-chip index closed the month down -5%. Today's candlestick patterns seem indecisive. It will be interesting to see whether the 7075 old resistance level now turned support will hold or not. The RSI is trading slightly below 30 suggesting a rebound back up is coming, and we might retest yesterday's resistance level at 7154.5 today.
Support: 7075 / 6960
Resistance: 7154.5 / 7188