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Technical analysis

FTSE technical analysis - Index drops sharply lower by 177 points

Squared Direct | Aug. 5, 2019
FTSE technical analysis - Index drops sharply lower by 177 points

FTSE is a sea of red after London’s blue-chip index sunk by 177 points to end at 7407 on Friday, making it the worst-performing FTSE 100 member.

5 August 2019 | SQUARED DIRECT The FTSE traded sharply lower on Friday alongside global equities in response to President Trump’s tariff threat against China.

Escalating US-China trade tensions against a backdrop of Brexit-related uncertainty in the UK dragged on the FTSE and may continue to do so in today’s session as it inspires risk-averse flows. Today, the UK publishes service PMI figure which should have a muted impact on the FTSE as trade concerns dominate global sentiment.

FTSE technical analysis

London’s blue-chip index dropped by 177 points to end at 7407 on Friday. The price traded through the 50-day MA at 7440 and should look to the 100-day MA at 7380 to provide the next level of support. Should price trade below 7380, we should see it target the support at 7340 followed by 7310. Meanwhile, the 7440 resistance level should limit upside potential and an attempt to test the resistance at 7470.

Support: 7310/7260
Resistance: 7440/7490

Chart (H4)

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