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FxWirePro: FTSE100 struggles to close above 100-day MA, good to buy on dips

FTSE100 has once again recovered from a low of 7148 and hovering near the 7200 levels. The index is trading slightly flat on ongoing Brexit uncertainty. Pound sterling lost more than 100 pips after a massive recovery of more than 650 pips. The slight dip came after Democratic Union Party (DUP) has rejected Boris Johnson Brexit deal.  UK 10-year gilts were one of the best performers this month and jumped more than 90% and spread between the yield has widened sharply to 8 bps from 1 bps.

 

Technically, major support for the day stands at 7140 and any break below will drag the index down till 7100/7020.

 

On the higher side, major resistance is around 7260 (100-day MA) and any violation above will take the index till 7300/7340.

 

It is good to buy on dips around 7170-75 with SL around 7130 for the TP of 7260.

 

 

By Rangarajan Hariharan
  • Market Data
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