Sunday, September 16, 2018

FTSE100 - 17 September 2018


Fundamental Highlights

With the market focus largely attuned to global trade developments, the FTSE 100 ended the week higher at 7,310.6 on positive market sentiment of easing trade tensions between the US and China, underpinned by gains in industrials and materials sector. This positive market sentiment was unfortunately short-lived as President Trump called for tariffs of $200bn worth of Chinese goods to be rolled out ahead of any resumption of talks, with a senior Chinese advisory official replying today that China would not negotiate "with a gun pointed to its head". Moreover, investors are still on the lookout for any ‘Brexit’ headlines that might come up during this week. In economic news, no important data is coming up today that could directly impact the FTSE 100.

Technical Analysis

The FTSE 100 retested and confirmed our 7309.5 resistance level and is trading below the 20-period SMA and the 50-period SMA with indicators such as RSI and MACD taking a bearish turn. Price is expected to retrace to our support levels if the index remains below the moving averages.

Support: 7268.4 7224.1
Resistance: 7309.5 7335.9

Chart (H1)