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FTSE 100 Turns Positive on Coronavirus Vaccine News

FTSE 100 Chart

FTSE 100 despite the negative opening managed to break higher after the positive headlines on the coronavirus front. A vaccine may be close for testing on animals and then humans. Scientists in the UK’s said they made a significant breakthrough by reducing a part of the average development time of the virus from “two to three years to just 14 days”. However, while animal testing may start immediately, human testing may not begin until summer. Above that, the Chinese TV reported that a research team at Zhejiang University has found an effective drug to treat infected people.

The FTSE  started lower in early trading as investors run to book some profits off the table amid the coronavirus spread worries. Traders await the services purchasing managers index due at 9:30GMT. Analysts expect the services PMI to come at 52.2 just like the previous reading, while the composite PMI is expected at 50.9. A slight recovery in British pound (GBP) also weighs on the index.

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FTSE 100 Technical Analysis

FTSE 100 has turned now 0.57% higher at 7482 on the positive headlines about the coronavirus vaccine. After the FTSE yesterday managed to break above the 100 day moving average, continues today and has also breached the 50-day moving average.   If FTSE 100 close today above the 50-day moving average in the daily chart the bulls will be in control.

On the upside, initial resistance for the FTSE stands at 7,485 the daily high. The next critical hurdle on the upside is the high from January 29th at 7512. More offers might emerge at 7587 the high from January 27th.

On the downside, the immediate support for the FTSE 100 index stands 7408 the daily low. In case the FTSE index breaks below the next support for the FTSE 100 is the 100-day moving average at 7377.