FxWirePro: FTSE100 downside capped by 61.8% fib, jump till 7290 likely

FTSE100 is consolidating after a major sell-off of more than 120 points from high of 7371. The sell-off was mainly due to fear of recession in US. US 10 year yield hits fresh 14 month low of 2.34% yesterday. UK MPs has rejected all alternative options yesterday.Proposals for a customs union with the EU were rejected by 272 to 264 and plan for another referendum got failed by 295 to 268.They also rejected all 8 indicative Brexit votes including no deal,a common market ,Labour’s alternative plan etc.The index hits low of 7163 and is currently trading around 7255.

On the lower side, any break below 7190 (20- day MA) will drag the index down till 7165 (61.8% fib)7140/7124. Any violation below 7075 will drag the FTSE100 till 7042/7000.

The near term resistance is around 7232 (200- day MA) and any break below will take the FTSE100 till 7262/7300/7325. Any bullish continuation only above 7371.

It is good to buy on dips around 7215-20 with SL around 7160 for the TP of 7300/7370.