FxWirePro: FTSE100 Daily Outlook

FTSE100 trades weak following footsteps of global market. The decline was due to global growth concerns. Chinese media sources says that Chinese will cut its rare earth supplies to US. US 10 year bond yield continues to trade lower and hits fresh 19 month low at 2.21%. The yield curve has inverted once again (3 month and 10 year yield) and spread between 10 year and 3 month widened to 11 basis point form 6 basis point. The index hits low of 7152 and shown a minor recovery. It is currently trading around 7206.

On the lowerside, near term major support is at 7149 low made on May 13th 2019 and any further weakness only below that level. Any violation below will drag the index till 7100/7075. Any break below 7040 confirms bearish continuation.

The major resistance is around 7245 (300- day EMA) and any convincing break above targets 7280/7317.The recent high 7376 made on May 22nd will be acting as trend reversal.

It is good to sell on rallies around 7235-40 with SL around 7280 for the TP of 7150.