Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	7840.0
Take Profit	7710.0
Stop Loss	7900.0
Key Levels	7710.0, 7840.0, 7920.0, 8050.0

Alternative scenario
Recommendation	BUY STOP
Entry Point	7920.0
Take Profit	8050.0
Stop Loss	7850.0
Key Levels	7710.0, 7840.0, 7920.0, 8050.0

Current trend

The leading index of the London Stock Exchange FTSE 100 is correcting around 7879.0, which is largely caused by unstable macroeconomic statistics and upward dynamics in the bond market.

According to the February report, the Unemployment Rate in the UK rose to 4.2% from 3.9%, which exceeded forecasts, and Claimant Count decreased to 10.9 thousand from 16.8 thousand, with expectations at 17.2 thousand. At the same time, Average Earnings Including Bonus was 5.6%, which coincided with the previous month, and Average Earnings Excluding Bonus decreased to 6.0% from 6.1% a month earlier.

The negative dynamics of the index is also facilitated by the situation on the domestic bond market, where the recent decline has given way to local growth: 10-year bonds are trading at a rate of 4.257%, which exceeds last week’s rate of 4.067%, 20-year bonds increased to 4.736% from 4.552%, and the yield on 30-year bonds was 4.770% after 4.597% a week earlier.

The growth leaders in the index are Beazley Plc. ( 2.98%), Ocado Group Plc. ( 2.02%), IMI Plc. ( 1.98%), B&M European Value Retail SA ( 1.92%).

Among the leaders of the decline are Endeavour Mining Corp. (-7.11%), Fresnillo Plc. (-3.94%), BP Plc. (-2.19%).

Support and resistance

On the daily chart, the index quotes continue their correction, reversing at the resistance line of the ascending channel 8000.0–7600.0.

Technical indicators are in a buy signal state, which has begun to weaken: the EMA fluctuation range on the Alligator indicator has begun to narrow, and the AO histogram is forming new corrective bars, decreasing in the buy zone.

Support levels: 7840.0, 7710.0.

Resistance levels: 7920.0, 8050.0.

Trading tips

If the asset reverses and continues declining, and the price consolidates below 7840.0, short positions can be opened with the target at 7710.0. Stop-loss — 7900.0. Implementation time: 7 days and more.

If the index continues growing, and the price consolidates above the resistance at 7920.0, long positions with a target of 8050.0 and stop-loss of 7850.0 will be relevant.

FTSE 100: RISING BOND YIELDS PUT PRESSURE ON INDEX POSITIONS