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FTSE 100 Finds Support at 7,250 on Better Manufacturing PMI Data

ftse gbpusd

FTSE 100 adds 0.22% at 7,264 recovering some of previous session heavy losses as investors digest the Fed decision and getting a hand from better Chinese manufacturing PMI figures. During the Asian trading session, the Caixin Manufacturing PMI came in at 51.7, topping expectations of 51 in October and 51.4 reading in September. The United Kingdom Manufacturing PMI came in at 49.6 topping expectations of 48.1 in October.

Nigel Farage the Brexit Party leader in his campaign launch pointed out that PM Johnson’s deal was not “true Brexit,” and urged him to reconsider the details of the deal. UK heads to general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020.

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FTSE 100 Support and Resistance

On the technical analysis side, FTSE 100 rebounds today from weekly lows after the index tested the 50-day moving average at 7,255. The index formed a death cross pattern on October 10, as the 50-day moving average crossed below the 200-day MA giving a bearish signal for FTSE.

On the upside FTSE 100 facing immediate resistance at 7,283 daily top and then at 7,283 the 200-day moving average before an attempt to 7,334 the 100-day moving average a level where the index rejected the last six trading sessions. If the index manages to pierce above convincingly could open the way for a move up to 7,440 the September highs.

On the downside, immediate support stands at 7,248.4 today’s low, while a break below will open the way for a test of 7,200 the low from October 23. Below this support, the next support target comes at 7.150 the low from October 22nd.

European equity indices trading higher today, Dax 30 is 0.41% higher at 12,919 the CAC 40 in Paris trading 0.38% higher at 5,751, In Milan, the FTSE MIB is 0.39% higher at 22,781.Download our latest quarterly market outlook for our longer-term trade ideas.

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