FTSE100 trades above 300- day EMA, jump till 7460 possible

Major Resistance - 7305

As per our analysis, FTSE100 is trading higher for 7th consecutive days and jumped more than 300 points after forming a temporary bottom around 7020 following the footsteps of Wall Street. US markets especially S&P500 is consolidating in a narrow range between 2810 and 2942 for the past 8 trading days. UK 10-year bond yield has shown a massive recovery of more than 60% from low of 0.26% and is currently trading at around 0.421%. The spread between UK 10 -year and 2- year still inverted by 1.7 basis points. The index hits a high of 7334 at the time of writing and is currently trading around 7299.

The near term resistance is around 7362 (100-day MA) and any violation above will take the index till 7400/7460.

On the flip side, the near term major support is around 7258 (23.6% fib) and any violation below will drag the index down till 7197 (200- day MA)/7180 (21- day MA)/7135. Any major decline only below 7000.

It is good to buy on dips around 7235-40 with SL around 7185 for the TP of 7360.