FxWirePro: FTSE100 Daily Outlook
Ichimoku Analysis (Daily chart)
FTSE100 continues to trade higher for third consecutive days and back to pre-pandemic levels. The positive earnings from Next and Melrose and BOE monetary policy are the main reason for FTSE100 to close above 7000 levels. The Bank of England has kept its rates unchanged as expected and slowed its bond-buying program of 3.4 billion a week from its current pace of 4.4 billion pounds a week. It has revised up the economic forecast for 2021 and 2022. The upbeat market sentiment and positive US economic data also supporting global markets. The FTSE100 hits a fresh pandemic high of 7115 and currently trading around 7111.
The near-term resistance to be watched is 7200 any break above will take the index till 7263/7300/7376. Significant bullish trend continuation only if it crosses 7200. On the lower side, near-term support is around 7020, and any violation below targets 7960/6840/6800/6765.
Indicator (Daily chart)
CAM indicator – Bullish
Directional movement index – Bullish
It is good to buy on dips around 7020 with SL around 6960 for the TP of 7200.