Strong Corporate Earnings Lift FTSE 100 Above 200 DMA

FTSE 100 is on its way to post the fourth consecutive session of daily gains on the back of the strong corporate earnings. The index has moved above the 200 DMA and it now approaches the 100 DMA at 7337.

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AstraZeneca, an English-Swedish drug giant, has reported the fifth successive period of rising revenues following great performances of its newer medicines and robust sales in emerging markets. Sales rose 18% in the third quarter while earnings per share came at $0.99, compared to a market forecast of $0.96. As a result, AstraZeneca stock trades more than 3% higher in London this morning.

Moreover, information provider RELX also trades 3.1% higher while Aveva Group shares are up 2.2% on the back of the accelerated growth in the first half of the year.

Technically, FTSE 100 is currently testing the descending trend line resistance following a clearance of the 200 DMA resistance. A close above the 200 DMA will pave the way for a more sustainable test of the 100 DMA that sits at 7337, around 17 points from the current market price.

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