The FTSE 100 has seen significant bullish pressure over the last 24 hours, and of course had a nice rally at the end of the day on Friday. The 7250 level above is resistive, but if we can break above there I think that the market will continue to go higher, especially if we can clear the 7300 level. At that point, the market should then go to the 7500 level, and beyond. I like the FTSE 100 in general, as I do most stock markets.
Last week, we saw a significant bloodbath in the stock markets around the world, as interest rates spiked in the bond markets. It seems to be abating now, so I think it’s only a matter of time before we go to the upside in the stock markets, as traders become a bit more relaxed. I fully anticipate that this market will revisit the 7500 level over the course of the next several sessions, but I also recognize that if we break down below the 7000 level significantly, the market could breakdown rather rapidly and violently. It would essentially be a major “floor” giving way.
The British pound has been a bit soft over the last several sessions, and that helps as well. However, I think that if the British pound rallies, the FTSE 100 can continue to go higher, because there are many other things to think about beyond currency headwinds. The global market itself looks rather healthy, and I think there is plenty of risk appetite out there that is looking to throw money at the United Kingdom.
FTSE 100 Video 13.02.18
This article was originally posted on FX Empire
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