Major resistance - 7265 (200- day MA)
FTSE100 is trading higher for the past 3-week after forming a minor bottom around 7020 on Oct 3rd, 2019. The rise was mainly due to slight easing in US-China trade tensions which has increased demand for riskier assets, but Brexit uncertainty to put pressure on the index at higher levels. S&P500 is trading above the 3000 levels and any violation beyond 3025 confirms further bullishness.
UK 10-year gilts have shown a major recovery of more than 100% in this month, spread between 2-year,10-year widened to 7 bps from -4 bps.
Technically, major resistance is around 7332 (100-day MA) and any break above will take the index till 7365/7400. Major bullish continuation only if it breaks 7450.
On the lower side, near-term support stands at 7240 and any break below that level to the next level till 7200/7130-40/7100. The major trend reversal level is 7000.
It is good to buy on dips around 7275-80 with SL around 7237 for the TP of 7350/7400.
