Wednesday, October 3, 2018

FTSE100 - 04 October 2018


Fundamental Highlights

The FTSE gained 35.8 points, closing at 7507.2 as clash concerns between Italy and the Eurozone were appeased with the Italian government pledging to row back on its spending plans. The rally in the FTSE was also aided by a drop in the pound as UK Prime Minister Theresa May emphasized – in her closing speech at the Conservative party conference - her desire to seal a Brexit deal that “Delivers for Britain”, but at the same time warning the EU that Britain is not afraid of leaving with a no-deal if they had to. UK Services PMI missed estimates by 0.1%, while UK composite PMI were 0.1% higher at 53.9 and 54.1 respectively. Housing Equity Withdrawal figures will be released today at 08:30 GMT.

Technical Analysis

The FTSE reached our first price target yesterday to bounce off our second resistance level at 7532, breaking out of the uptrend parallel channel from below with bearish cross on MACD indicator on the hourly chart. First price target at 7480 with second price target at support level of 7442.7

Support: 7477.8 7442.7 7418.5 7399.3
Resistance: 7519.6 7532 7556.1

Chart (H1)