FTSE100 holds well above trend line resistance, jump till 7500 likely

FTSE100 trading higher for past 6 days and jumped more than 200 points following footsteps of Wall street.US markets closed higher for 4th consecutive days and recovered more than 17% on easing trade tensions. US 10 year yield surged more than 3.5% on Apr 1st highest single day rally in past 4 months on better than expected manufacturing data from US and China. UK services PMI came at 48.9 for month of Mar compared to forecast of 51.The index hits intraday high of 7412 and is currently trading around 7398.

On the higher side, the index is trading above 7356-7371-7385 (trend line resistance /Mar 21st high/61.8% fib) confirms major bullishness, a jump till 7500/7584 is possible.

The near term support is around 7349 (23.6% fib) and any violation below drag the index to next level till 7300/7272 (10- day MA)/7250. Any close below 7223 (200- day MA) confirms further weakness.

It is good to buy on dips around 7350-55 with SL around 7300 for the TP of 7500.