FTSE 100 Bounce On Coordinated Central Banks Intervention

FTSE 100
FTSE 100

FTSE 100 jumps in early trading as the coordinated central banks’ intervention ease the coronavirus fears. Bank of England yesterday in surprising move cut the interest rates down from 0.25% to 0.1%. The central bank also announced the increase of UK government and corporate bonds holdings by £200 billion.

ECB also announced a bond buying program up to 750 billion. The Fed extended US dollar swap lines to several central banks including New Zealand, Australia, Singapore, South Korea and Brazil.
FTSE 100 boosted today by InterContinental Hotels Group +22.59% at 2931, Intertek Group plc +15.08% at 5119, Carnival plc +14.70% at 842 and Informa plc +11.85% at 417.

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FTSE 100 Support and Resistance

FTSE 100 is 3.55% higher at 5332 as the rebound from the 2011 lows continues for the second consecutive day. Despite today’s sharp rebound, the technical picture is bearish for the FTSE index, and only a move above the 6,000 mark can cancel the downward trend.  

On the upside, initial resistance for FTSE 100 stands at 5,419 the daily top. The next obstacle for the FTSE index is at 5,688 the high from March 13, trading session. If the FTSE index breaks above the next supply zone will be met at 5880, the high from March 12th. 

On the flip side, the first support for FTSE stands at 5,151 the daily low. If the index breaks lower, the next support area is at 4984 the low from March 17. More support would be met at 4,947 the low from yesterday’s trading session, which guards the recent low at 4891.  

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