FTSE 100 continues to sell off during trading on Tuesday

The FTSE 100 continues to fall during the trading session on Tuesday, reaching down as low as the 7600 level. We have bounced from there to gain 50 points, but it now looks as if the 7700 level above will offer a bit of a “ceiling” in this market. We’ve recently seen a major crossover of the 24 and the 48 moving average is on the hourly chart, showing that the short-term trend certainly has turned over. · FX Empire

Christopher Lewis

Updated Tue, May 29, 2018, 10:50 PM

The FTSE 100 fell significantly during the trading session on Tuesday, slicing through the 7700 level and reaching as low as 7600 before bouncing about 50 points. We have started to show signs of exhaustion after that, and I think we could continue to go lower. We have had a crossover of the 24 and the 48 simple moving averages on the hourly chart, showing that the short-term trend is most certainly to the downside.

I think that overall, the market should continue to see a lot of noise, and I think that the 7500-level underneath is an area that should attract a lot of attention, the market will struggle to break down through there, but if we do that, I think the market could unwind rather drastically. I anticipate that we are going to retest the 7500 level and find massive amounts of buying pressure. The alternate scenario is that we break above the 7700 level, perhaps giving us an opportunity to start adding to the longer-term positions, perhaps reaching towards the 8000 handle. A break down below the 7500 level would change the overall trend, and at that point I would be a net seller, but currently I’m looking at this as a potential buying opportunity and potential value.