Monday, October 1, 2018

FTSE100 - 02 October 2018


Fundamental Highlights

Mixed news on the FTSE 100 as the index closed only 0.9 points higher at 7497.9 after reaching a high of 7525.7 and a low of 7460.9. On one hand, Brexit complications are on the rise again as Prime Minister Theresa May faces a divided party over her Chequers plan at the conservative conference in Birmingham, while comments from finance minister Philip Hammond and a higher than expected manufacturing PMI lifted the pound, weighing on shares in export-oriented firms. On the other hand, gains among oil majors on rising crude prices provided support to the index. In stock specific news, shares in the postal service operator Ryanair sank as much as 20% after a profit warning. In economic releases, Nationwide HPI is coming out today at 06:00 GMT, and BoE FPC Meeting Minutes alongside Construction PMI figures at 08:30 GMT.

Technical Analysis

As of September 28th, the FTSE has been trading in a downtrend, forming lower highs and lower lows. An hourly close below 7465.6 will push prices lower to our support level at 7442.7 which coincides with the 200 period SMA. A downward breach of the 200 period SMA will add to the bearish momentum with our next support levels set as targets respectively, as long as the downtrend is respected.

Support: 7477.8 7442.7 7418.5 7399.3
Resistance: 7519.6 7532 7556.1

Chart (H1)