Bulls Join the Action as FTSE 100 Breaks Above the 100-day MA
FTSE 100 started strong the session adding 0.70% at 7,361 after Brexit party has stood down from 43 non-Tory seats while investors await the Boris Johnson debate with Labour Party leader Jeremy Corbyn. Wall Street indices finished slightly higher yesterday while today the Asian benchmarks ended mixed with the Nikkei giving up 0.53%.
Investors getting mixed signals from the trade talks as a Chinese official said that the mood in China is pessimistic. USA is planning to introduce tariffs on $155 billion worth of Chinese products. Meanwhile, Huawei was granted a 90-day extension period as the USA finalises regulations on telecommunication firms.
Later today we expect data from US housing market, the housing starts and building permits for October.
FTSE today breaks above the 100-day moving average giving a bullish signal for the index. Buyers now are targeting the monthly highs at 7,430. In case we have any positive Brexit news the FTSE will make an attempt to yearly highs at 7,727.
On the downside, the index will meet support at 7,307 the daily, while if that level cleared the next support comes at 7.288 the 50-day moving average. November’s 1st low at 7,246 will provide further support.More content