The FTSE 100 continues to go sideways in general, as we have bounced from the 7000 handle. That’s an area that is a “floor” in the market, and I think if we can stay above there the uptrend is still intact. That’s not to say that is going to be an easy move higher, because I recognize that we have seen a lot of destructive action in the stock markets recently, and I also recognize that the 7250 level above should be resistance. Once we break above there, I feel that the market probably goes looking towards the 7500 level and so on. I do like buying these pullbacks, they give us an opportunity to pick up value.
If we can stay above the 7000 handle, this is essentially a “buy only” market, but I also recognize that it’s going to be very noisy. Because of this, I am looking to pick up little bits and pieces and add as the move works in my favor. Longer-term, I still believe that the FTSE 100 will rally right along with the other European indices, as well as American ones. The markets have been sold off rather hard recently, so it makes sense that we are a little bit hesitant to rally. Ultimately, I think that we will get buyers jumping in and pushing the FTSE towards higher levels.
FTSE 100 Video 14.02.18
This article was originally posted on FX Empire
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