FxWirePro: FTSE100 upside capped by 300-day EMA,good to sell on rallies

Major resistance- 7245 (300- day EMA)

FTSE100 trades lower after more than 80 points jump yesterday The decline was mainly due to

1. Global stock market sell-off- US indices is trading weak for past 4 days and S&P500 lost more than 2.5% on ongoing trade war. US President Trump said yesterday that US will impose 5% tariff on Mexican import from Jun 10th .
2. Declining bond yield: US 10 year bond yield declining further and hits 20 month low and spread between US 10 year and 3 month widened to 18 basis point from 10 basis point (inverted).

On the lowerside, near term major support is at 7149 low made on May 13th 2019 and any further weakness only below that level. Any violation below will drag the index till 7100/7075. Any break below 7040 confirms bearish continuation.

The major resistance is around 7245 (300- day EMA) and any convincing break above targets 7280/7317.The recent high 7376 made on May 22nd will be acting as trend reversal.

It is good to sell on rallies around 7200-10 with SL around 7240 for the TP of 7045.