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FxWirePro: FTSE100 recovers sharply after ECB signals more stimulus, good to buy on dips

The FTSE100 shown a massive recovery of more than 80 points from intraday low of 7345 after ECB President Draghi dovish speech. The ECB is ready to cut rates and to start once again asset purchase program if inflation doesn't pick up. The global stock market especially Wall Street has jumped more than 0.80% from today's low after Draghi's fresh stimulus signal. It hits an intraday high of 7436 and is currently trading around 7434.

Technically the index was facing strong resistance around 7422 and after three days of consolidation, it has broken for the day. This confirms minor bullishness, and a jump till 7500/7530 likely.

On the flip side, near term support is at 7375-80 and any break below first support will drag the index till 7345 (200- 4H MA)/7317-20 (Jun 14th low/55-H EMA). Any further bearishness only below 7317.

It is good to buy on dips around 7390-7400 with SL around 7345 for the TP of 7500.

By Rangarajan Hariharan
  • Market Data
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