Monday, May 6, 2019

FTSE100 - 06 May 2019


Fundamental Highlights

The FTSE traded 0.40% higher to end at 7380 on Friday at the back of an earnings beat from HSBC bank. In terms of data, impressive jobs report from the US aided a lift in the FTSE , while sterling strength limited further gains on the Index. While UK markets are closed for the holiday today, A continuous decline in oil and US-China trade headlines threatening the resolution of a protracted trade war is likely to lead the FTSE lower when it resumes trading tomorrow.

Technical Analysis

The Footsie managed to bounce off of the support zone of 7340/7350 to edge towards the 20-period MA around 7400 before nudging down to end at 7380. Failure to move above 7400 reaffirmed the short-term down trend which may drive the FTSE towards lower support levels should the 7300 level fail as support.

Support: 7350/ 7320
Resistance: 7380/ 7420

Chart (H4)