The momentum on the FTSE 100 seems to be stalling, we could see a move lower heading into the weekend.

Taking a look at the FTSE 100 after its recent bounce higher, currently trading at around 7,335. The index tried to break higher almost reaching the resistance of 7,394 but soon retraced, it may be likely that the bullish momentum is running out of steam. The UK data this week has shown further weakness in the British economy and we could see further moves lower going into the end of the week. Support now sits at 7,330 (50-day MA) and then at 7,300 (20-day MA). A break below the 20-day moving average could see the FTSE slide lower towards the key support level 7,215 formed last Friday. At this moment in time, the upside is limited and we would only look higher if the index broke the resistance of 7,385 (today’s high) and then 7,394. Looking at the technical indicators, MACD is positive but volume seems to be stalling and the RSI is now starting to falter as it reads 54.