The FTSE ended virtually flat on Monday as it gained a mild 6 points. Rising tensions in the Middle East following the report of a British oil tanker being seized by Iran led FTSE’s oil majors higher on the account of supply disruptions in crude oil. In addition, support stemmed from positive headlines reporting that the US and China will resume trade negotiations next week. Meanwhile, the UK announces its new PM today and further weakening of the pound due to Brexit uncertainty may help keep the FTSE afloat.
The FTSE traded higher to reach an intraday high of 7546 before giving up gains to end at 7514. The price is hovering around the 20-day MA at 7514 as it struggles for direction beyond the range of 7545-7475. Look for a sustained move above the 20-period MA at 7525 to indicate buying pressure and lead to a re-test of the resistance at 7545. Alternately, look for a sustained move below the 7490 level to indicate selling pressure and test the support zone of 7475/7470.