Technical Analysis - FTSE 100 - A cloud is hanging over UK equities

Wednesday, 13th March 2019 10:02 - by Rajan Dhall

As the UK PM's Brexit deal got voted down the FTSE 100 bearly moved at the open this morning despite being called to open lower by financial bookmakers. 

I have added a chart with some levels to keep a close eye on as they could indicate something important.

• Remember a weaker GBP helps the FTSE 100
• 7000 seems to be a key support level if it breaks 6600 could be a target
• Central banks are becoming more accommodative again, but global growth is still slowing
• 7265 is a key level to the upside and if it breaks 7600 is the next target resistance
• The BoE have stated if there is a no deal outcome they will support markets with stimulus measures

This week is massive now as there needs to be some kind of resolution. Analysts are stating that an extension is the most likely outcome but it could come at a cost. If there is another referendum GBP could rise sharply and the FTSE could crumble and lastly, May can try and come back with another deal to vote on. We must be clear the FTSE is not like the S&P where the trade deal and Fed accommodation are the main themes. There are more variables closer to home that could dictate price action and the fundamentals will be a key driver, but the levels are still very important.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.