Friday, March 22, 2019

FTSE100 - 22 March 2019


Fundamental Highlights

The FTSE index outperformed european indices as it rose 0.9% aided by a weaker pound amidst fears of a no-deal Brexit. Though the EU approved to extend the deadline of the UK’s withdrawal, the manner of departure remains a key concern. In central bank news, BOE kept interest rate unchanged with plans to steadily raise interest rates should the course of Brexit go as smoothly as hoped.

Technical Analysis

The Footsie was able to push price slightly past resistance at 7350 to a close of 7355 on Thursday whilst re-entering the overbought region on the RSI. Weakening of bullish momentum alongside an exit of the overbought territory would have the FTSE consolidate gains above the 20-period MA coinciding with the support zone of 7290-7270 before extending the upside move to the 7390 level which paves the way for the next target resistance at 7470. The support found at the 20-period MA will be indicative of near-term direction and a trade below this level would suggest a move toward support at 7220.

Support: 7290/ 7220
Resistance: 7390/ 7470

Chart (H4)