Major resistance -7350
FTSE100 has taken support near 55-day EMA and shown a minor increase of more than 80 points on positive global cues. US markets are trading higher and S&P500 hits an all-time high around 3055. The rise in the stock markets came on account of easing the US-China trade war. It hits high of 7347 and is currently trading around 7285.
UK 10-year yield is trading low for the 6th consecutive day and lost more than 25% after a massive recovery of more than 100%. The spread between 10 and 2-year yield narrowed from 8 bps to 6 bps.
Technically, near term support is around 7255-60, any violation below will drag the index down till 7200/7137-40/7100. Major bearish continuation only under 7000.
The major resistance stands at 7350, a convincing break above targets 7450. The decline from 7729 will get completed at 7020 only if it breaks beyond 7450.
It is good to buy on dips around 7250-55 with SL around 7200 for the TP of 7450.
