FTSE100 is trading higher for 4th consecutive day after a minor decline till 7062 level. The index is trading higher following footsteps of US market. S&P500 has broken 200- day MA after a long consolidation and closed slightly above that level. The index has jumped more than 450 points from minor bottom 6733. The weak pound sterling also supporting the index. Cable has lost nearly 150 pips from the high 1.29935 and shown a minor recovery.The index hits intraday high of 7176 and si currently trading around 7167.
The index has taken support near 23.6% fib around 7062 and shown a minor jump. Any weakness in the near term can be seen if FTSE100 trades below 7038 and any violation below targets 6959 (20 day MA). Any close below 6960 confirms further weakness and a dip till 6900/6833.Major bearish continuation only below 6733 level.
On the higher side near term resistance is around 7200-7220 (300- day EMA) any break above confirms bullish continuation and a jump till 7300/7560 is possible.
It is good to buy on dips around 7120-25 with SL around 7060 for the TP of 7220/7300.
