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FTSE 100 Rebounds after Testing the 50 Day MA

FTSE 100 Rebounds after Testing the 50 Day MA
FTSE 100 Rebounds after Testing the 50 Day MA

FTSE 100 gives up 0.19% at 7,221 as it continues the correction from monthly highs as no-deal Brexit worries eased while UK Average Earnings Including Bonus (3Mo/Yr) came in at 4% topping forecasts of 3.7% in July,  the Average Earnings Excluding Bonus (3Mo/Yr) matched expectations of 3.8% in July. The ILO Unemployment Rate (3M) came in at 3.8% below forecasts of 3.9% in July.

PM Johnson second call for a snap general election was rejected by MPs yesterday, meaning an election scenario before the deadline of October 31st  has cancelled.

FTSE 100 getting a boost from JD Sports +5.98%, IAG +3.75%, Barclays plc +3.67% and RBS +3.06%. On the other hand, Just Eat is -4.53%, Experian is –3.69% and LSE is -3.42% lower.

On the technical side FTSE 100 tested successfully today the 50-day moving average at 7,200 and managed to rebound as it digests the impressive rebound from four-month lows. The index facing the resistance at 7,235 daily high and then at 7,310 weekly high, while more offers will be met at 7,353 the 100-day moving average which is critical for the FTSE’s moves in the upcoming trading sessions; a close above could open the way for 7,366 and the 200 day moving average. On the downside immediate support stands at 7,199 today’s low, while a break below will open the way for a test of 7,106 low from August 29th.

European indices also trading lower, the DAX 30 gives up 0.10% to 12,212 while the CAC 40 in Paris trading 0.37% lower at 5,568, In Milan the FTSE MIB is giving up 0.25% at 21,935.

In Wall Street, the Dow Jones futures trading 0.19% lower at 26,788, the S&P 500 futures are 0.22% lower at 2,972 while the Nasdaq futures are 0.31% lower at 7,806 signaling a weak start for equities in the other side of the Atlantic.Don’t miss a beat! Follow us on Telegram and Twitter.

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