FTSE 100 Testing The 50-Day SMA Resistance

FTSE 100
FTSE 100

FTSE 100 continues on positive foot for the second straight day as investors sentiment improves on positive news from China – USA trade agreement and the coronavirus front. U.S. trade representative Robert Lighthizer and China’s Vice Premier Liu He said that phase one deal is progressing and we might see further improvement.

The Federal Drug Administration (FDA) approved the use of blood plasma from recovered COVID-19 patients as a new treatment option. The Drug Administration is also considering proceeding with fast-tracking approval for the COVID-19 vaccine called AZD7442, produced by Oxford University and AstraZeneca.

Travel and entertainment stocks are leading the way today. International Consolidated Airlines Group is 3.40% higher at 203.85. GVC Holdings plc is 2.98% higher at 794.40, and InterContinental Hotels Group is 2.95% higher at 4,429. AstraZeneca is 0.77% higher at 8,678.

On the other hand, among the top losers are Rio Tinto -1.15% at 4,675, Kingfisher -0.55% at 272.50 and HSBC Holdings is -0.47% at 336.40.

FTSE 100 Technical Analysis

FTSE 100 is 0.20% higher at 6,117 as the bulls returned emphatically today breaking above the 100-day moving average but off the morning daily highs. The index managed yesterday to close above the 100-day moving average, while today attempted to break above the 50-day moving average. 

That is the critical point for today, a settlement above 6,151 will enhance the bullish momentum and expected more bulls to join the action.

If FTSE 100 fails tody at the 50-day moving average, we might see a correction towards 6,050 the 100-day moving average, which now has turned into support. A break below might target 5,953 the low from August 21. 

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FTSE 100 Daily Chart

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