Tuesday, October 9, 2018

FTSE100 - 10 October 2018


Fundamental Highlights

Choppy trading day for global equities with the FTSE recovering some of its losses and closing at 7323.2, on the back of an increase in oil prices driving energy and mining stocks higher, as hurricane Michael partially shuts down production in the Gulf of Mexico, and lower Iranian crude exports are registered ahead of U.S sanctions. On the other hand, Brexit negotiations and Italy’s budget deficit continued to weigh down on the index and on investors’ risk appetite. On another note, the majority of analysts have been downgrading earnings estimates for the FTSE as 3rd quarter results' season approaches and Brexit negotiations drag on. In economic news, an important day ahead for Britain’s economic calendar; GDP, Manufacturing Production and Trade Balance figures will be released at 08:30 GMT, and afterwards BoE MPC Member Haldane will be speaking at 09:00 GMT.

Technical Analysis

The FTSE is still trading in a downtrend with the 50-period and 200-period SMAs forming a bearish cross on the daily chart. On the lower timeframes (4H and 1H) momentum indicators are showing an upbeat in bullish momentum which will continue - if confirmed by an hourly close above the first price target of 7262 – with a second price target at 7322. A failure to reach the first price target will be considered as a sign of weakness and further downside towards the respective support levels should be expected.

Support: 7195.5 7101.1 6967.2
Resistance: 7264. 9 7323.5 7386.9

Chart (H1)
FTSE100 oct10