Major support- 6996
FTSE100 has halted its 2-week of weakness and shown a minor recovery. The index lost more than 700 points from high of 7729 following the footsteps of Wall Street. The decline was mainly due to a US-China trade war and global bond yield sell-off. UK 10 year and 2-year gilt spread inverted for the first time in a decade. The index hits low of 7020 and is currently trading 7117.
On the flip side, major support is around 6996 and any convincing break below will drag the index till 6900/6850.
The near term resistance is around 7150 and any violation above targets 7195 (200- day MA). Any daily close above 200-day MA confirms minor bullishness. Major trend reversal only above 7305.
It is good to buy on dips around 7075-80 with SL around 7000 for the TP of 7300.
