FxWirePro: FTSE100 hits 2-month high on better than expected British Petroleum fourth quarter update, good to buy on dips

After a huge sell-off of more than 250 points FTSE100 is trading higher for 6th consecutive day following footsteps of Wall Street. S&P500 was trading higher for 4th consecutive day and hits 2-month high supported by better earnings from tech companies.UK Oil and gas giant BP has reported better than anticipated full year profits and it has really doubled its earnings to $12.7 billion. Brexit uncertainty is major concern. Pound sterling is trading lower and hits 2-week low after weak UK services PMI data.g to reopen any talks. Pound sterling lost more than 150 pips after key Copper vote on extending deadline for Britain to leave EU failed. FTSE100 hits intraday high of 7141 and is currently trading around 7127.

Technically the index’s near term resistance is around 7150 and any break above targets 7220 (300  day EMA). Any daily close above 7220 confirms bullish continuation.

The near term support stands at 6920 and any violation below will drag the index to next level till 6861/6800 . Further weakness will be seen only below 6733 low made on Jan 28th 2019.

It is good to buy on dips around 7075-80 with SL around 7000 for the TP of 7220.