The FTSE 100 is set to open up by 15 points as the market reacts to the impressive UK retail sales numbers. The index is trading at £6,344, which is in the same range it has been in the past few days.
According to official numbers, the volume of retail sales in the UK rose by an annualised rate of 5.8% in October while the core retail sales rose by 7.8%. These figures were better than estimates. These sales were driven by a recent surge in early holiday shopping and the anticipation of another lockdown.
Robust sales in the UK is a good thing for FTSE 100 constituent companies like Ocado, Sainsbury, and Tesco.
Investors are also focusing on Brexit after talks halted yesterday after members tested positive for the virus. Like I have written before, an agreement between the two sides would be a good thing for most companies in the blue-chip index since most of these firms have business throughout Europe.
The top companies to watch today will be Sage Group, which will publish its trading update today. The retailers mentioned above will also be watched because of the sales data.
FTSE 100 technical outlook
Turning to the hourly chart, we find that the FTSE index has been in a tight range this week. It has remained between £6,464 and £6,295. As a result, the index is along the 14-day moving average while its volatility has slumped. Therefore, even after the strong retail sales, I expect that the index will remain within the current range, with the key support and resistance being at £6,295 and £6,392.
Don’t miss a beat! Follow us on Telegram and Twitter.
FTSE technical chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.