FTSE 100 Bulls Waiting for a Bullish Signal From Services PMI

FTSE 100 trades almost unchanged in morning trading following substantial gains yesterday after the stronger than expected NFP data from the USA. Decent data from China earlier today point to a fast recovery after the coronavirus lockdown. China services PMI for June came in at 58.4, beating the expectations and marking the best rate of expansion in the last ten years.
Germany Services PMI came in at 47.3 above the forecasts of 45.8 in June. The European Monetary Union Services PMI registered at 48.3 topping the expectations of 47.3, while the Composite PMI came at 48.5 beating the expectations of 47.5.
As U.S. stock markets are closed today for the 4th of July holiday, investors will focus today on the services PMI for June, with expectations at 47 while the forecast for the Composite PMI is also around 47.
Lloyds Banking Group (LLOY) is 1.43% lower at 31.38, HSBC is 0.50% lower at 387.15, BT Group is 0.93% lower at 112.17, Vodafone (VOD) is 0.20% lower at 129.18, Ocado is 1.07% higher at 2,073. Barclays (BARC) is 1.24% lower at 116.43, and RBS is 1.40% lower at 123.08. Tesco adds 1.26% at 224.60.

FTSE 100 Technical Analysis 

FTSE 100 is 0.08% lower at 6,233 as the index trades cautiously ahead of the services PMI. Yesterday’s gains drove the index above the 100-day moving average and enhanced the positive momentum for the short term. 

On the downside, the first support for the FTSE 100 will be met at 6,229 the daily low. If the sellers break that support, then the next target is at 6,116 the 100-day moving average. A break below would attract more bears targeting 5,946 the low from June 15.   

On the other hand, the initial resistance for the FTSE 100 index is at 6,262 the daily top. The next hurdle for the index stands at 6,325 the high from June 24. Next resistance to watch is at 6,484 the high from June 9.

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FTSE 100 Daily Chart

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