The FTSE is seen opening lower as it follows losses on global equities prompted by recent developments on the US-China trade front. Trade headlines leave markets in a cautious stance as traders will look to further developments and the resumption of trade negotiations tomorrow to reverse the doubt President Trump’s tariff threats on China have cast on an imminent trade deal. Moreover, weaker oil prices and sterling strength may limit upside moves on the FTSE.
The Footsie resumed trading today and dipped below the support zone of 7340/7350 to target the 7320 area. Failure to edge above the 20-period MA around 7400 will maintain the downtrend and leave price ranging before a sustained move below 7350 indicates further downside pressure. Moreover, the daily RSI reading has recorded a lower low while price has formed a higher low, thereby indicating a potential recovery on the FTSE should price manage to hold above the support zone of 7350
Support: 7320/ 7290
Resistance: 7380/ 7420