FTSE100 outlook: Hits new record high

FTSE 100

FTSE 100 index hit new marginally higher record high on Tuesday, as strong bullish acceleration extends into third straight day.

Strong gains in UK defense stocks, food producers and retailers, along with weaker pound and rising commodity prices contributed to strong advance of blue-chip stock index.

Bullish daily studies support the action, but overbought conditions warn of a partial profit-taking, after the index advanced 2.8% in past three days.

Dips should find solid ground at 7950/30 zone (Fibo 38.2% of 7746/8076 upleg / converged 10/20DMA’s) to position for fresh push higher and attack at Fibo projections at 8117 and 8161 (123.6% and 138.2% respectively).

Caution on break here and loss of 7900 zone, which would shift near-term focus lower.

Res: 8076; 8117; 8161;8200.
Sup: 8000; 7950; 7930; 7900.