Tuesday, November 6, 2018

FTSE100 - 06 November 2018


Fundamental Highlights

The FTSE100 is seen opening tentatively higher on Tuesday as investors exercise caution ahead of the US midterm elections, with a busy day ahead on the UK corporate front. Primark, Associated British Foods and Tobacco, Imperial Brands, Direct Line, Randgold Resources, WM Morrison Supermarkets, and workspace provider IWG are all set to release earnings today. On the political scene today, UK Prime Minister Theresa May faces her Cabinet after Dublin insisted it would not accept any unilateral UK ability to end a Brexit backstop agreement on the Irish border.

Technical Analysis

FTSE ended Monday at 7104 gaining about £10 (0.14%) and closing within the prior day's range, with prices unable to decisively move beyond the previous day's trading range. Although the index is experiencing a short-term uptrend which might continue today targeting the 7185 resistance, this could just be a correction, as both the medium and long-term trends are still bearish. The RSI looks bullish on the hourly chart signaling some buying pressure ahead.

Support: 7115 / 7050
Resistance: 7185 / 7225

Chart (H1)