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The FTSE 100 rallied significantly during the session on Wednesday, breaking above the 7600 level. Now that we have done that, the market goes towards the 7700 level as a record this video. The 7700 level looks likely to give way, but we may have to pull back in the meantime to build up the necessary momentum. I believe that pullbacks will be looked at as a potential value play, and with the FTSE 100 flexing its muscle so strongly, I think that we continue to see buyers jump in and take advantage of any short-term signs of weakness.
I think that the longer-term target will probably be 8000, but it’s going to take a while to get there obviously. The 7500-level underneath is massive support, and I believe essentially the “floor” in the market. I believe that the market should continue to see value hunters come in on these dips, and I think it’s all but impossible to short this market until we break down below the 7500 region. The market certainly has been in a bullish tone for quite some time, and I think that should continue to be the case. I have no interest in shorting until we get some type of major collapse, something that doesn’t look likely. Ultimately, every time we dip it’s probably a cue to pick up a little bit more, building a larger core position for what should be strength over the course of the summer.
FTSE 100 Video 10.05.18
This article was originally posted on FX Empire