FTSE technical analysis – Index closes higher at 7198

FTSE 100 closed higher on Wednesday, reversing a previous loss, but there was still plenty of investor unease over the state of the global economy.

8 August 2019 | SQUARED DIRECT – The FTSE traded 0.38% higher to end at 7198 on Wednesday even as trade concerns weigh on global markets. Global central banks’ initiated monetary policy easing yesterday which reflected global growth concerns due to the US-China trade war.

Nonetheless, the Chinese Yuan’s stabilization against the dollar alongside the prospect of a meeting between the two nations in September should buoy sentiment in the absence of negative trade headlines.

FTSE technical analysis

The FTSE gained 27 points to end at 7198 on Wednesday. The price edged towards the resistance at 7240 however failed to move past it and dipped towards the support at 7150 during yesterday’s session.

The FTSE had yet to realize the upside potential once the RSI reading exits the oversold territory and price overcomes 7240 level to target the higher resistance at 7315. Meanwhile, look to the 7184 level near the 200-day MA to determine near-term direction on the day, with a sustained move below this level required to indicate selling pressure and re-test the support at 7150.

Support: 7185/7150
Resistance: 7240/7315

Chart (H4)


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