FTSE 100 Lower Post Brexit Vote

UK benchmark index, FTSE 100, traded 0.5% lower on Wednesday after a brutal government defeat made Brexit evermore complicated. In addition, sterling traded higher on Wednesday and its ‘sell the rumour, buy the fact’ gyration seemed to have no impact on the FTSE. Leading the pack were housing stocks, with Persimmon trading up 3.82%. On the flip side, education publisher Pearson is down 6.80% after total underlying revenue is expected to slip by 1%. Reckitt Benckiser is also in the red after its CEO stated he intends to retire by the end of 2019.

The technical space for FTSE 100 continues the bear theme as mentioned in my previous report. Recently, the index has rallied higher from its 6,527 low and has traded through the middle tine of the Andrews pitchfork as well as breaking through the 23.6% Fibonacci level of May-December selloff. Price found resistance at the key psychological level of 7,000.00 and in turn have retrace lower, nearing 6,820.82, the 38.2% fibo level of the 6,527.28-7,002.27 advance.

Trending setups are mixed. The short-term 21-Day EMA has turned higher, now at 6,836.26 and may provide support to price action. The 50-Day EMA is flat with the 100-Day EMA trending southbound. The 100/50-Day EMA’s lie at 7,051.45 and 6,905.34 respectively.

Momentum setups are a little more positive. The RSI continues to hold above the 50 level, at 51. The MACD trends higher though remains in negative territory.

Key levels to watch out on the downside are:

Weekly Pivot Points

7,242.00

R3

7,122.13

R2

7,015.77

R1

6,895.90

PP

6,789.54

S1

6,669.67

S2

6,563.31

S3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© Akif SH. Din MSTA, CFTe, AGORA-direct Limited, 16/01/2019

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