The FTSE traded 0.3% higher on Tuesday as US-Mexico deal relieves global trade tensions while China maintains bullish sentiment as it provides fresh stimulus measures to boost the nation’s slowing economic growth. China’s move helped offset the rise of trade concerns triggered by President Trump’s tariff threats against China as it boosted the mining sector in the FTSE. Meanwhile in the UK, better than expected employment data helped lift the pound thereby limiting gains on London’s blue-chip index. There are no major economic releases out of the UK to impact price action and the FTSE may take directional cues from Wall Street following the release of US CPI data. Moreover, US-China trade developments will be monitored to impact global sentiment and market direction.
The FTSE managed to hold above the 7370 level and drifted towards the resistance zone of 7400/7420 before ending at 7398. Price’s extension past the 7370 level enforces the bullish view and targets the 7440 and 7470 level should price overcome the resistance at 7400. The RSI reading is currently sitting below the overbought territory and leaves room for price to extend past the 7400 level before a turn lower takes place. Price should find immediate support at 7370 as it ranges whilst attempting to extend the rally.
Support: 7370/ 7330
Resistance: 7420/ 7440