FTSE 100 edged lower the first hours of the trading session today after the retaliation strikes by Iran to U.S. bases in Iraq. The U.S. hasn’t confirmed any casualties yet. The missile attacks signal further escalation and now investors have to watch the U.S. response. Iranian officials, described the missile attack as self-defence and he added that Iran does not seek escalation or war.
On the data front, the United Kingdom Halifax House Prices (month over month) came in at 1.7% topping forecasts of -0.2% in December giving a hand to real estate stocks in the FTSE.
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FTSE 100 Support and Resistance
FTSE 100 gives up 0.38% at 7,545 as the correction from five-month highs continues. On the technical side, the momentum is positive but now the bulls have to be carefull as the increase in geopolitical tensions might drive investors away from risky assets.
On the downside, immediate support for the index stands at 7,525 the daily low. More offers will emerge at 7,496 the low from December 17th. If FTSE 100 break below that level the next critical support stands at 7,390 the 50-day moving average.
On the other hand, initial resistance for the index will be met at 7,573 the daily top. If the geopolitical tensions ease we might see a break above that level. Next supply zone stands at 7,623 the high from January 6th. A move above that level will give the upper hand and might open the way for 7,668 the high from December 27th.
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