Can FTSE 100 Break Above 6,300 On COVID-19 Vaccine Hopes?

London FTSE 100

FTSE 100 started higher on Tuesday after the historical deal from EU members on the coronavirus relief package boost risky assets in Asia and Europe. Meanwhile, EU strikes a deal on the relief fund after a record four days of negotiations.

The deal is for 390 billion of grants and 360 billion on loans. The basic tool, the Recovery and Resilience Facility is up to 672.5 billion, but the grants lowered by 110 billion since the initial proposal after pressures from Holland, Austria, Sweden and Denmark.

In the UK, the government borrowed 34.8 billion in June above the forecasts of 34.3 billion, but below the 45.5 billion borrowed min May. Now the total UK government debt has reached 1.98 trillion.

Lloyds Banking Group (LLOY), is 2.33% higher at 31.13, Tesco is 1.03% higher at 216.45. HSBC is 2.06% higher at 383.68, BT Group is 0.12% lower at 115.35. Barclays (BARC) is 1.77% higher at 118.27, RBS is 2.34% higher at 122.30. Vodafone Group (VOD) is 0.54% higher at 130.05.

FTSE 100 Technical Analysis 

FTSE 100 is 0.49% higher at 6,292 as the index continues the consolidation phase that started on July 15th, amid mixed signals from the coronavirus front. Short term technical picture has improved as the index stays above the 50-day moving average. The long term technical outlook remains bearish as the index trading below the 200-day moving average.  

Looking at higher grounds, the first obstacle for the FTSE 100 index is at 6,300 the daily high. The next resistance for the FTSE index stands at 6,322 the high from July 15th trading session. The next supply zone for FTSE is at 6,474 the high from June 9th. 

On the other side, the immediate support for the FTSE index will be met at 6,261 the daily low. If the sellers, break that support, then the next target would be at 6,170 the 50-day moving average. Next support for FTSE 100 index stands at 6,089 the low from July 14th. 

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FTSE 100 Daily Chart

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