FTSE 100 started higher the first trading session of the week, mirroring a record high close in Wall Street on Friday and a strong session in Asian markets. Risk appetite has returned to UK equities after the FDA approved the use of blood plasma from recovered COVID-19 patients as a coronavirus treatment. The technology sector continues to drive Nasdaq and S&P 500 to record highs despite the rising number of new coronavirus infections that pose a threat to the economic recovery.
Meanwhile, the economic data in the UK shows some signs of improvement. Last week reported that Retail sales climbed 3.6% in July beating the forecasts. Consumer price index jumped to 0.4%, in July well above the expectations of 0.1%.
In corporate news, BT is outperforming adding over 7% after news that the company is preparing a plan to defend against any takeover attack from its rivals. Bunzl is trading 4% higher after the announcement that bought a safety business in the USA and a packaging distributor in Ireland. AstraZeneca is 2.1% higher at 8,618 on speculation the USA considering to give fast-track for its experimental coronavirus vaccine.
FTSE 100 Daily Technical Analysis
FTSE 100 is 1.58% higher at 6,096 as the bulls returned emphatically today, breaking above the 100-day moving average spending only one trading session below that critical support. The move today enhances the short term positive momentum, and a test of the 50-day moving average at 6,153 looks now possible. Intraday resistance stands at 6,103 the daily high.
In case of a correction, initial support for FTSE 100 is at 6,044 the 100-day moving average and then at 6,001 the daily low. More buying interest expected at 5,953 the low from Friday’s trading session.
On the upside, first resistance for the Dow index stands at 25,601 the high from yesterday. A move above 25,601 might open the way for a test of 25,027 the high from June 24. If the bulls continue then the next supply zone for the Dow Jones is at 26,274 the 200-day moving average.
On the flip side, immediate support for Dow Jones index is at 25,096 the low from yesterday. Next support for the Dow Jones will be met at 24,952 the 50-day moving average. A break below 24,952 might open the way for a test of 24,755 the 100-day moving average.
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FTSE 100 Daily Chart
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