The FTSE 100 initially tried to rally during the session on Wednesday but found enough resistance to turn around and fall towards the 7700 level. That’s an area that has attracted a lot of attention in the past, but it looks as if we are trying to rally over the longer-term, as we have continued to consolidate overall, and I think that eventually we will break above the 7775 level, and then reach to the 7900 level as well. I think that if we can break above that level, then the market should go to the 8000 handle.
I believe that the recent selloff has been a bit overdone, and I think that it’s only a matter of time before the buyers come back in on a larger term “risk on move.” I think that if we break down below the 7600 level, then I think the market goes down to the 7500 level. Overall, I think that if we can make a stand here at 7700, that could be the beginning of a move to the upside as it will show a failure to reach the bottom again, quite often signaling that the sellers are starting to run out of momentum. I think ultimately that will be the signal to go higher. That’s not to say that this will be easy, there are a lot of concerns when it comes to the British economy, but quite frankly I think that traders are looking to take advantage of cheap pricing.
FTSE 100 Video 14.06.18
This article was originally posted on FX Empire
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