The FTSE traded marginally lower as it fell by 0.12% to end at 7268 on Tuesday. President Trump’s comments on Monday stating that he was not ready to make a deal whilst reminding China it could further raise tariffs aggravated tensions and was followed by reports pointing to a possible retaliation from China as it considers restricting earth exports to the US. The speculations which have not yet materialized have nonetheless impacted sentiment negatively and leaves traders in a cautious stance as they await further developments on the global trade front to determine direction on the FTSE.
The FTSE exhibited range-bound price action as it is bounded by the support and resistance at 7260 and 7310 respectively. Holding above the support at 7260 could see buyers drive price towards 7310 which if broken would lead to the resistance at 7340 acting as barrier for further gains towards 7370. Alternately, a sustained move below 7260 should see price meet support at 7240 before extending losses towards the 7200 level of support.
Support: 7240/ 7200
Resistance: 7310/ 7340