Major Support- 7000
FTSE100 has formed a triple bottom around 7000 and shown a nice recovery of more than 200 points on short-covering and weak pound sterling. GBP lost more than 200 pips after hitting a high of 1.24130. The trade war tension between the US and China is putting pressure on global markets. UK 10-year gilts were trading lower for the past 3 weeks and lost nearly 50%. The spread between the 10-year and 2-year has widened from - 5 bps to 1 bps. The index hits a low of 7137 at the time of writing and is currently trading around 7179.
On the flip side, near term support is around 7137 and any violation below will drag the index down till 7100/7079. Major weakness only below 7000.
The near term resistance is at 7225 and any break above will take the index till 7250/7278 (61.8% fib)/7335. Major trend reversal only if breaks 7450.
It is good to buy on dips around 7140-45 with SL around 7100 for the TP of 7278.