Stocks in London are set to open higher today, despite growing global political tensions. Chinese stocks extended their rebound for a second straight session, pulling European futures higher in the process. In the UK, Prime Minister Theresa May insists the Brexit deal is 95% complete as she faces MPs after a weekend of vicious attacks from within her own ranks. In a thin corporate calendar scheduled for today, budget airline Ryanair reported a fall in first half profit as average fares slid due to "excess capacity" in Europe.
Technically speaking, the FTSE is still stuck within a tight trading range. Friday's trading range has been below the last trading month's daily average range. Weekly volatility is also lower, being way below the market's average weekly trading range. The trend is clearly bearish, showing an intact downtrend in the short and medium terms. However, buying could speed up should prices move above the nearby swing high at 7080.00 where further buy stops might get activated as we break above the 200-period moving average.
Support: 6970 6925
Resistance: 7070 7185