FTSE 100 Breaks Above The 50-day SMA On Coronavirus Drug Hopes

FTSE 100
FTSE 100

FTSE 100 starts the week higher supported by positive sentiment in Asian markets amid hopes of the Gilead’s Remdesivir coronavirus drug. Investors will focus on the earnings season that kicks off tomorrow with the U.S. banks reporting first. Investors ignored the rising number of coronavirus cases in the USA, which reported 60,000 new cases, while Florida surpassed the 15,000 mark of new cases.

The optimism of more fiscal stimulus also helps sentiment; FTSE 100 managed today to break above the 50-day moving average after tested successfully the previous week the 100-day moving average. Lloyds Banking Group (LLOY), which is 0.82% higher at 30.70, HSBC is 0.87% higher at 381.10, B.T. Group is 0.86% higher at 110.95, Ocado is 0.02% higher at 2,000. Tesco is 1.30% higher at 217.60. Barclays (BARC) is 0.22% higher at 118.00, RBS is 1.23% higher at 123.03. Vodafone (VOD) is 1.54% higher at 125.32.

FTSE 100 Index Technical Analysis 

FTSE 100 is 0.91% higher at 6,150 breaking above the 50-day moving average and regaining the strong positive momentum for the short term. The long term picture remains bearish below the 200-day moving average.   

On the upside, the first resistance for the FTSE 100 is at 6,186 the daily top. The next hurdle for the FTSE index stands at 6,282 the high from July 7. The next supply area is at 6,472 the high from June 9.

On the flip side, the immediate support for the FTSE 100 index will be met at 6,095 the daily low. If the bears, break that support, then the next target is at 6,038 the 100-day moving average. Next support zone for FTSE 100 stands at 5,957 the low from June 15.  

 

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FTSE 100 Daily Chart

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